Method and system for selecting a sales channel

ABSTRACT

A processor-assisted method for selecting a sales channel for a specific item ( 4900 ). The disclosed method includes analyses of variables such as expected costs ( 4600 ), sales items ( 4100 ) and market, third party and/or internal data ( 4200 ).

CROSS-REFERENCE TO RELATED APPLICATION

[0001] This invention relates to, claims priority to, and incorporatesby reference herein in its entirety, each of the following pending U.S.patent applications:

[0002] Ser. No. 09/579,464 (Attorney Docket Number 11445-7), titled“Method and System for Evaluating a Product”, filed May 26, 2000;

[0003] Ser. No. 09/560,812 (Attorney Docket Number 11445-6), titled“System and Method for Managing Returned Goods”, filed Apr. 28, 2000;

[0004] Serial No. 60/185,713 (Attorney Docket Number 11445-4), titled“System and Method for Managing Returned Goods—Part 2”, filed Feb. 29,2000; and

[0005] Serial No. 60/181,931 (Attorney Docket Number 11445-1), titled“System and Method for Managing Returned Goods”, filed Feb. 11, 2000.

FIELD OF THE INVENTION

[0006] The present invention relates to the field of sales, and, moreparticularly, to a method and system for selecting a sales channel.

BRIEF DESCRIPTION OF THE DRAWINGS

[0007] The invention will be more readily understood through thefollowing detailed description, with reference to the accompanyingdrawings, in which:

[0008]FIG. 1 is a flowchart of an exemplary embodiment of a method 10 ofthe present invention.

[0009]FIG. 2 is a block diagram of an exemplary embodiment of a system20 of the present invention.

[0010]FIG. 3 is a block diagram of an exemplary embodiment of aninformation device 30 of the present invention.

[0011]FIG. 4 is a flowchart of an exemplary embodiment of a method 40 ofthe present invention.

[0012]FIG. 5 is a collection of tables exemplifying an embodiment ofmethod 40 of the present invention.

[0013]FIG. 6 is an outline applying an exemplary embodiment of method 40of the present invention using the exemplary tables of FIG. 5.

DETAILED DESCRIPTION

[0014] Embodiments of the present invention provide a method formanaging a change in rightholders for an item. A method of oneembodiment includes receiving the item by a bailee from a secondrightholder, a right for the item having previously transferred from oneof a plurality of first rightholders to the second rightholder. Themethod also includes, after receipt of the item, facilitating a returnof the right for the item from the second rightholder to the firstrightholder. The method further includes appraising the item andidentifying a third rightholder for the item.

[0015] Embodiments of the present invention also provide a method formanaging Z-goods. A method of one embodiment includes receiving from afinancial intermediary an authorization regarding a Z-good. The methodalso includes receiving the Z-good from a provider at a centrallocation, classifying the Z-good into one of a plurality ofclassifications, and identifying a purchaser for the Z-good.

[0016] Embodiments of the present invention further provide a method forproviding a description of an item. A method of one embodiment includesreceiving an item, recording a verbal description of the item, linkingthe verbal description to a textual description of the item, andrendering the descriptions to a potential rightholder of the item.

[0017] Embodiments of the present invention also provide aprocessor-assisted method for selecting a sales channel for a specificitem. The method includes, for a set of items, the set associated withone or more channel variables, each channel variable having a pluralityof channel values, the set also associated with a plurality of itemvariables, each item variable having a plurality of item values,identifying each possible combination of channel values and item values.The method also includes, with a processor, comparing a statisticallydetermined expected cost to a statistically determined expected benefitof each possible combination to determine an optimal combination, andoffering a specific item for sale on a channel having the channel valuesof the optimal combination.

[0018] An “item” (or “Z-good”) can be any tangible personal property,such as, for example, a product, a bundled group of products, and/or aproduct bundled with a service. An “owner” or “titleholder” of an itemof tangible personal property can hold numerous rights in that property.Those rights can include the right to possess, use, alienate, and/ordestroy the property. Moreover, those rights can include the right toprevent others from possessing, using, alienating, and/or destroying theproperty.

[0019] An item also can be any tangible personal property that embodiesintangible property, such as a book, music recording, video recording,computer program, financial instrument, etc. For example, from atangible personal property viewpoint, a book can be considered inkattached to several sheets of paper, all of which are surrounded by apaper or cardboard cover. From an intangible property viewpoint, a bookcan be considered the information conveyed by the pattern of the ink. Apurchaser of a book typically obtains full ownership rights in thebook's tangible personal property, but few, if any, rights in theintangible property. That is, a purchaser typically obtains the right topossess, use, alienate, and destroy the ink, paper, and cardboard of thebook, but no right to copy, alienate, or create derivative works of theinformation content of the book.

[0020] Rights in an item can sometimes be transferred from onerightholder to another. For example, an owner of a tennis racket cansell, lease, lend, give, or bequeath the racket to another person orentity. When sold, given, or bequeathed, all of the rights of the ownercan transfer unconditionally or conditionally to the purchaser. Whenleased or loaned, less than all of the rights of the owner are typicallytransferred to the recipient. For example, the recipient of the leasedor loaned property typically does not have the right to sell or bequeaththe property. Moreover, that recipient can be prohibited from releasingor re-loaning the property, or even using the property in any but aproscribed manner.

[0021] To enhance clarity, the phrases “first rightholder” and/or“seller” will be used henceforth, however, typically phrases such as“lessor”, “licensor”, etc. can be substituted without changing theintended scope of the invention disclosed herein. Further, the phrases“second rightholder”, “purchaser”, and/or “returner” will be usedhenceforth, however, typically phrases such as “lessee”, “licensee”,etc. can be substituted without changing the intended scope of theinvention disclosed herein.

[0022] Frequently, a second rightholder (e.g., purchaser, lessee, etc.)of an item may develop a desire to return the item to the firstrightholder (e.g., seller, lessor, etc.). There can be numerous reasonsmotivating the desire to return the item. For example, a returner canhave a change of mind regarding the purchase of the item, and/or candesire to return an item because the item malfunctions or does not meetthe returner's expectations. Moreover, the returner may desire to returnthe item because the item has been recalled, is too difficult toassemble, does not match a particular decor, or duplicates an item thereturner already possesses. Further, the returned may find the same itemavailable at a lower price elsewhere, and can therefore desire to returnthe previously purchased item to recover the price difference.

[0023] Thus, there is a strong demand in the market to return items froma second rightholder to a first rightholder. In the retail arena, thisstrong demand has gradually eroded merchants' resistance to acceptingreturns, such that most large merchants, and many smaller ones,currently accept returns. This is particularly true around the Christmasseason, when the return of gifts becomes a high priority for manyconsumers. In fact, on average, merchants who sell directly to consumersexperience return rates of 25%, with many merchants frequentlyexperiencing return rates above 35%. Moreover, under increasing marketpressures, merchants have gradually begun to accept returns at any time,for any reason, and in a few cases, regardless of the condition of thereturned item.

[0024] Almost all merchants, however, are ill-equipped to handle returnsdue to poorly designed and/or poorly managed reverse logistics systems.In fact, about 30% of e-commerce companies believe that returns will betheir biggest fulfillment challenge in 2001. Typically, areturn-accepting merchant stocks a returned item until it can beaccounted for, and then attempts to resell the item to a new consumer.If reselling the item is not practical, the merchant attempts to billthe item back to the manufacturer or distributor, who typically requeststhat the merchant dispose of the item, and who credits the merchant'saccount with about one half the merchant's cost for the item. Somemanufacturers sell items to merchants with a “zero returns” policy. Inthis case, manufacturers give an up-front discount to merchants and thendo not accept any merchandise returns, thereby placing the entirereverse logistics burden on the merchant. This practice has become morepopular in recent years for the same reasons that the invention can bebeneficial—most manufacturers cannot economically handle returned goodsand are not in the business of reverse logistics.

[0025] When a merchant (also referred to herein as a “retailer”) can noteasily resell the item to a consumer, the merchant typically disposes ofthe item by landfilling, donating the item to charity, or by bulking theitem with other items and selling the bulk container by the pound,frequently recovering only a small percentage of the item's cost to themerchant. In fact, on average, bulk disposals net a merchant only 13% ofthe cost of the item. Moreover, manufacturers and merchants combinedlose over $35 billion each year on reverse logistics, much of this onhandling consumer returns.

[0026] These losses can be broken down further into hard and soft costs.Hard costs for a merchant can include lost revenue from the consumer;lost inventory, shipping (from manufacturer) and handling costs of theoriginal consumer sale; lost package materials costs if not charged tothe consumer in original sale (occurring more frequently in eCommercedue to competitiveness of merchants); lost customer service costs; lostprocessing, accounting, and billing costs if a restocking fee is chargedto the consumer or merchant; lost forward logistics costs associatedwith selling the same item a second time; lost handling, restocking,administration, accounting and, frequently, shipping costs in managingthe return; lost financial and operational efficiencies due to frequentinventory disputes and returned item theft; inventory cost increases dueto long cycle time before item disposal; lost salvage value due to agingof items during long cycle time; lost cost of packaging returned itemsfor disposal; and/or significant lost value by selling returned items inbulk—many times at cents per pound of item.

[0027] Soft costs can include lost brand and market value due to itemreturn issues; lost competitive advantage due to increased cost of salesand related increased sales prices; lost revenue from buyers that wouldotherwise purchase if item returns policies were more liberal; lostconsumer confidence due to fear of needing to return a item; lostrevenue due to consumer fear of restocking fees (frequently 15% ofretail value); lost revenue because when customers spend money onrestocking fees (no margin expense reimbursement), they have less moneyto buy high-margin items; lost customer satisfaction and confidence dueto delayed credits for returned items; lost revenue of gift buyingcustomers due to limited return options for gift recipients; and/or lostlifetime value of customers and reduce customer switching costs due tocustomer service dissatisfaction and purchase resistance.

[0028] For a manufacturer, hard costs can include lost revenue frommerchants and rationalize it as a cost of doing business; lost cost ofmanufacturing items when credit is given to merchants; lost inventoryand handling costs of original sale; lost handling, restocking,administration, accounting and, transportation costs if a item isaccepted as a return; lost inventory costs due to typical long cycletime before item disposal; lost salvage value due to aging of itemsduring long cycle time; lost cost of packaging returned items fordisposal; and/or lost significant value by selling items in bulk—manytimes at cents for the pound of item. Soft costs can include merchantfrustration with item returns; customers' fear of returns which canlimit revenue potential (a major reason for consumers to avoid buyingon-line, after credit card and privacy fears); and/or customerdissatisfaction that reduces the lifetime value of customers.

[0029] Because so little of the costs of returned items are recovereddirectly by merchants or manufacturers, some of these costs are passedon to consumers in the form of higher prices for purchased items. Thus,returned items currently create substantial losses and costs formanufacturers, merchants, and consumers. Moreover, for those returneditems that are not salvageable, society absorbs a substantial cost inthe form of reduced landfill space and an increased potential forgroundwater pollution.

[0030] Thus, managing returns and reverse logistics is a long-standing,large, and growing problem without a known solution.

[0031] Method 10

[0032]FIG. 1 is a flowchart of an exemplary embodiment of a method 10 ofthe present invention. As shown at activity 1020, method 10 can includea first rightholder transferring at least possession of (via, e.g.,selling, leasing, etc.) an item to a second rightholder. If sold, thefirst rightholder (seller) can transfer all rights to the secondrightholder (purchaser). If leased, the first rightholder (lessor) cantransfer the right to possess and use the item to the second rightholder(lessee).

[0033] Before, during, or after the transfer of rights in activity 1020,as shown at activity 1040, the first purchaser can take possession ofthe item. As shown at activity 1060, however, the first purchaser maydevelop a desire to return the item to the seller. The seller cancommunicate that the item is to be returned to a bailee. For thepurposes of this application, a bailee is an individual or entity whotakes possession, but not title, of an item of tangible property intrust for another. Thus, the bailee can serve at least the seller, thereturner, and/or both.

[0034] As shown at activity 1080, the returner can send or take the itemto the bailee, who can take possession of the item. The bailee canreceive returned items (“returns”) from numerous returners (such as,e.g., end consumers, retailers, distributors, manufacturers, third- orfourth-party logistics entities, etc.). The bailee can have a centralreturns location or can have numerous distributed returns locations.Moreover, the bailee can receive items at numerous distributed locationsand then aggregate the returns at a central location. Further, thebailee can utilize an agent or contractor who has numerous distributedlocations to receive returns, and then ship the returns to the bailee'sregionalized or centralized returns location. If the bailee iscentralized, the returner can personally deliver the item, or, morelikely, can send the item via a delivery service such as UPS. Further,the bailee can take possession of the item at a location of thereturner's choosing, such as at the returner's home or office. If areturn arrives at the bailee that is unexpected, or without includingsufficient information to identify a seller and/or purchaser, the baileecan return the item to its sender.

[0035] As shown at activity 1100, the bailee can inform the sellerand/or returner that the bailee has possession of the item. For example,the bailee can scan a barcode on a shipping label for the item andautomatically generate and send an e-mail to the returner indicatingthat the item was received, and an e-mail to the seller indicating thatthe item was received from the returner. In another embodiment, theseller and/or returner can be informed via posting on a web page, pushtechnology to a web browser, facsimile, voice-mail, pager, telephone,hard copy letter, or any other well-known method of communication.

[0036] As shown at activity 1120, the bailee can obtain returninformation related to the item. Return information can include a wideassortment of information, including information about the seller, thereturner, and/or the item. In one embodiment, at least a portion of thereturn information can be obtained from a shipping label used to shipthe item to the bailee. For example, the shipping label can include aseller code, a returner code, and/or an item code, any of which can bein a numeric and/or barcode format. The bailee can read and/or scan anyof these codes and interpret the codes via a database lookup.

[0037] For example, based on a seller code, the bailee can obtain anidentification of the seller, including contact information for theseller such as the seller's address, telephone number, pager, fax,e-mail address, and/or web page. Moreover, the bailee can obtain areturn policy from the seller explaining how the seller wants the baileeto handle various returns. Further, the bailee can obtain returncriteria from the seller explaining features to inspect on the item.

[0038] Also, the bailee can obtain authorization from the seller toprocess the return. This authorization can be obtained on anitem-by-item basis, or can be a standing authorization. If obtained onan item-by-item basis, the authorization can be provided via, forexample, a return authorization provided by the seller at the time ofsale of the item to the purchaser. The return authorization can includeinstructions on how to return the item, an identification (such as abarcode or numeric code) for the item, the seller, and/or the returner,and can include a shipping label addressed to the bailee.

[0039] As another example, the return authorization can be provided tothe purchaser and/or the bailee as a return authorization number uponthe purchaser communicating to the seller a request to return the itemand the seller agreeing to that request. As yet another example, thereturn authorization code and any other needed information regardingreturning the item can be provided to the purchaser by the bailee in ane-mail or via traditional mail, along with a thank you for purchasingthe item.

[0040] By way of similar example, based on a returner code, the baileecan obtain an identification of the returner, including contactinformation for the returner such as the returner's address, telephonenumber, pager, fax, e-mail address, and/or web page. Moreover, usinginformation on the shipping label, on a return authorization form, in areturn authorization number, and/or via a database lookup, the baileecan also obtain when the item was purchased, where the item waspurchased, and the purchase price, as well as the returner's reason(s)for the return.

[0041] Utilizing one or more marketing databases, additional informationcan be obtained about a returner, including for example, geographic,demographic, purchase behavior, return behavior, lifestyle, automobile,household, and/or home data associated with the returner. Also,marketing databases can provide wealth indicators, market segmentationcodes, and/or other information related to a returner. The marketingdatabases can include those of the bailee, the seller, and/or those ofthird parties, such as the InfoBase, SmartBase, and/or AbiliTec databaseservices provided by Acxiom Corporation of Conway, Ark. Other marketingdatabases and techniques are disclosed in Acxiom Corporation'sCase-in-Point web site (www.acxiom.com/caseinpoint/cip-ix-d.asp), whichis incorporated herein by reference in its entirety. The data withinsuch third party databases is typically accessible based on providing aname and address for an individual.

[0042] Based on the item code, the bailee also can obtain informationregarding the item. This information can be obtained from, for example,a database of the bailee, the seller, a distributor of the item, and/ora manufacturer of the item. In an exemplary embodiment, the bailee cantransmit the item code to the seller, who can provide variousinformation about the item, including the item's description, color,style, size, features, limitations, manufacturer, assembler,distributor, supplier, vendor, warranties, photo, lot number, sell bydate, recalls, etc.

[0043] As shown at activity 1140, the bailee can inspect the item. Theinspection of the item can consider criteria, and/or follow a checklist,provided by the seller or developed by the bailee. If provided by theseller, the criteria and/or checklist can be provided in numerous ways.For example, once the seller receives an e-mail identifying the itemcode of the item being returned, the seller can transmit the criteriaand/or checklist. As another example, a seller can provide the criteriaand/or checklist on one or more web pages, or in a database, to whichthe bailee has access.

[0044] As shown at activity 1160, upon inspection of the item, thebailee can classify the item into one of numerous categories. Exemplarycategories include:

[0045] items that are in original condition

[0046] items that can be sold as new

[0047] items that are undamaged

[0048] items with damaged packaging

[0049] items with damaged and/or missing instructions/paperwork

[0050] items that are damaged

[0051] items that are defective

[0052] items that are non-defective

[0053] items that are functional

[0054] items that are dysfunctional

[0055] items that are nonfunctional

[0056] In another illustrative example, items can be classified as “A”,“B”, and “C”. Those items classified as “A” items can be those that canbe sold as new. Depending on the seller's return policy, “A” items canbe returned to the seller or manufacturer, or sold by the bailee.

[0057] Those items classified as “B” items can be any items that areimperfect, yet can be re-sold to consumers. Moreover, “B” items caninclude items that can not be sold as new for legal, item condition,and/or seller reasons. Further, “B” items can include items that haveimperfect packaging. These items frequently arise for e-commerce andcatalog merchants, because shipping items to homes increases the naturalwear-and-tear on the packaging and items. Further, since items cannot berestocked and resold through the mail as economically as they can be inbrick-and-mortar stores, there is less incentive for merchants who shipto customers to resell returned items. For example, at least onee-commerce merchant currently donates all of their returned items tocharity.

[0058] Those items classified as “C” items can be any remaining itemsthat can not be sold to consumers, but can be disposed of throughtraditional asset recovery methods (e.g., reconditioning, donating tocharity, selling as bulk scrap, etc.).

[0059] Finally, those items classified as “D” items can be any remainingitems which cannot be disposed of through traditional asset recoverymethods, but which must be disposed of via such methods as landfilling,incinerating, etc.

[0060] Also, as shown at activity 1160, the bailee can place the item ininventory while awaiting sale of the item or fulfillment of a sale ofthe item. To enable appropriate inventory management, the bailee canattach a “license plate” or identification to the item so that theitem's physical location can be more easily tracked.

[0061] As shown at activity 1180, the bailee can add value to an item.This value can take the form of replacing missing parts, instructions,and/or other paperwork, re-packaging the item, repairing an item'sdamaged packaging, or repairing the item itself. Thus, a bailee canenhance an item such that it can be treated, for example, as a “B” itemrather than a “C” item. Such enhancement can also occur before thebailee receives the item, by, for example, the bailee assisting thereturner by providing specialized packaging for shipping the item to thebailee.

[0062] As shown at activity 1200, the bailee can automatically offer theitem for sale to a third rightholder (referred to herein as a “newpurchaser” and/or “buyer”). An offer for the item can be in the form ofan advertisement, and can include item information, such as thatobtained in activity 1120.

[0063] The item can be sold via any mechanism, including any form ofauctioning. To facilitate the sale, the bailee can provide, for example,a web site at which potential buyers can browse available returned itemsand place bids on those desired. For example, the web site can include anumber of pages, each dedicated to, for example, a particular returneditem, to any item having a particular item code, to any item from aparticular seller, and/or to any item from a particular manufacturer,etc.

[0064] Further, such a web site can have a simple membership system andlogin system. The membership system can capture a profile of thepotential buyer, including name, shipping address, phone, fax, pager,e-mail, web site, shipping method, billing address, payment information,etc. The web site can also have a search engine to facilitate detailedsearches by, for example, price, item name, item number, itemdescription, item size, item condition, item category, item model, brandname, seller, manufacturer, auction opening date, item minimum bid,auction closing date, and/or item closing price, etc. Also, the web sitecan have tools to customize viewing options by, for example, any of thesearch criteria, as well as the ability to automatically generate e-mailnotices about items currently and not currently available for bidding.In addition, the web site can provide a help/tutorial system, post-saleservice, chat rooms, item feedback forums, and warranty information.

[0065] Moreover, the bailee can post a returns policy for returns thatare purchased from the bailee. For example, the bailee's return policycan be limited to a warranty that the item is as described. As anotherexample, the bailee's return policy can transfer to the buyer of thereturned item the original warranty that provided to the returner. Asyet another example, the bailee can offer a buyer an extension of theoriginal manufacturer's warranty, and/or insurance for the item. Thiswarranty and/or insurance can be provided by the bailee, a contractor tothe bailee, or an independent third party. As still another example, thebailee's return policy can be more liberal, including, for example,allowing returns at any time, allowing returns in any condition, and/orallowing returns for any reason.

[0066] As an example of the inspecting and offering of an item, if abook is returned with a bent cover, a return authorization code enteredby the bailee can automatically bring up a picture of the book. Thebailee can choose a pre-written description for the condition of thebook (i.e. bent cover) from a dynamic inspection criteria specification,or can type in a short description of the condition. Once the baileesubmits this information as a “B” Item, an auction web site canautomatically show a posting for the book A description of the item, theISBN number, a starting bid, and the condition of the book can be shownon the page. A picture of the book can also be included on the web page.Technologies such as “agents” or “bots” can be utilized to collectinformation not in the bailee's database from web sites, such as thoseof merchants, manufacturers, and auctioneer. If a picture doesn't exist,then a digital camera located on the processing line can be used sothat, depending on the item, a picture can be downloaded to the databaseand posted to the web site.

[0067] In another embodiment, once the bailee submits a description ofthe inspected item, a sales channel optimization engine can determinewhich auction site(s) or other sales channels are best situated to offerthe item for sale. For example, the sales channel optimization enginecan utilize both current and historical information regarding this andsimilar items, including the number of such items in the bailee'sinventory, the frequency of returns of such items, and/or recent salesprices for similar and/or related items at each of various saleschannels to determine the optimal channel through which to offer eachindividual item, and/or all items having similar descriptions.

[0068] As shown at activity 1220, the bailee can select a buyer for theitem and, as shown at activity 1240, can complete the transaction tosell the item to the buyer. This transaction can generate additionalinformation about the buyer, such as, for example, the buyer'sidentification, address, telephone number, pager, fax, e-mail address,and/or web page. Moreover, based on the information generated in thetransaction, additional information can be obtained from one or moremarketing databases regarding the buyer, such as that informationdescribed above for the returner.

[0069] As shown at activity 1260, the bailee can fulfill the transactionand can cause possession of the item to transfer from the bailee to thebuyer by, for example, sending the item via a parcel delivery servicesuch as UPS. As shown at activity 1280, the bailee can obtain paymentfrom the buyer, and submit a portion of that payment to the seller,retaining a fee for the bailee's services.

[0070] As shown at activity 1300, the bailee can provide returninformation to at least one stakeholder for an item. A stakeholder foran item can be anyone who is concerned with the item's design,manufacture, distribution, sale, use, maintenance, repair, disposal,and/or any other activity in the item's life cycle. For example, astakeholder can be the seller, the returner, and/or the buyer, asdescribed above. The stakeholder also can be a manufacturer, assembler,distributor, supplier, vendor, maintainer, repairer, recycler,wholesaler, retailer, and/or merchant of the item. For example, in oneembodiment, the bailee can obtain and analyze return information for anynumber of items, including demographic information for each returner ofeach item, and provide an aggregated, privacy-protected, demographicprofile of returners of the item to the seller. Similar demographicprofiles can be provided to the seller for buyers.

[0071] As another illustrative example, because the bailee can aggregatereturns of any item, regardless of how many different sellers supply theitem to purchasers, the bailee can accumulate reasons that a particularitem is returned, and provide this information to a manufacturer of theitem. Thus, the manufacturer can quickly learn of a design,manufacturing, and/or marketing defect and take actions to alleviatethat defect or mitigate its effects. By way of example, rather thanwaiting for information regarding a manufacturing defect in a woman'ssneaker to drift back to the sneaker's manufacturer from a sufficientnumber of merchants to awaken the manufacturer to the defect, byaggregating returns and return reasons, embodiments of the invention canquickly alert the sneaker's manufacturer to the defect.

[0072] As yet another illustrative example, the bailee can identify apattern of returns by the returner and/or purchases by the buyer. Forexample, a given individual may return a high percentage of itemsrecently purchased. This can indicate someone who has suddenlyexperienced a reduced cashflow or sudden need to reduce expenses. Suchan individual may become a higher credit risk, which is information thatcould be of great value to a seller who provides financing to apurchaser.

[0073] As still another illustrative example, the bailee can identify astatistically significant pattern of returns by returners and/orpurchases by buyers fitting a particular demographic profile. Forexample, the bailee may notice that males aged 8 to 12 are bidding upthe price of returned Nintendo games. Such information can be ofsubstantial value to merchants or the manufacturer of the games.

[0074] At some point in method 1, whatever right and/or rights that wereheld by the second rightholder can be returned to the first rightholderand/or extinguished in the second rightholder. For example, this changeof rights can coincide with shipment of the item by the purchaser to thebailee, receipt of the item by the bailee, reporting of receipt of theitem by the bailee to the seller, inspection of the item by the bailee,reporting of inspection results for the item by the bailee to theseller, selling of the item by the bailee, and/or shipment by the baileeto the buyer, and/or delivery of the item to the buyer, etc. By way offurther example, after the bailee inspects the item and reports to theseller that the item is in condition for sale as an “A” or “B” item, theseller can accept the return, credit the selling price to the purchaser,and re-take full title to the item, with possession remaining in thebailee until the item is re-sold to a buyer. Thus, by reporting returninformation to the seller, the bailee can facilitate a transfer of theright from the purchaser to the seller.

[0075] As mentioned above, at activity 1140, the item can be inspectedby the bailee and/or another entity. The results of this inspection canbe captured in numerous ways. For example, various perceivedcharacteristics of the item can be described using text, graphics,animation, photographs, audio recordings, and/or video recordings. Thesedescriptions can be contained in or on any appropriate media, includingpaper, film, magnetic media, electronic media, optical media, and/or anyother known media. These descriptions can be stored as analog and/ordigital information.

[0076] In one illustrative embodiment, the bailee can type a textualdescription of the item. In another illustrative embodiment, the baileecan narrate a verbal description of the item into an analog or digitalaudio recorder. In yet another illustrative embodiment, a contractor tothe bailee can create a video description of the item using an analog ordigital video camera/recorder Similarly, photographic descriptions canbe captured using any type of camera. Also, a composite description canbe created using any combination of text, graphics, animation,photographs, audio recordings, and/or video recordings.

[0077] Moreover, descriptions in one format can be converted to another.For example, a textual description can be converted to a verbaldescription, using known text-to-speech software. Similarly, a verbaldescription can be converted to text using known speech recognitionsoftware. Likewise, a video description can be segmented into aphotographic description, or an audio portion of an audio-videorecording can be separated from the video portion, and then converted totext as described above, if desired. Further, a photographic orvideographic description can be converted to animation, using knownanimation software.

[0078] Descriptions can be provided by others to the bailee. Forexample, the first rightholder can provide the bailee with a textualdescription of the item, the second rightholder can provide the baileewith a photographic description of the item, and the bailee itself canprovide an audiotaped verbal description of the item.

[0079] Moreover, a description can be joined or linked to anotherdescription for the same or a different item. For example, the baileecan link a verbal description of an item to a textual description of theitem. In one illustrative embodiment, such a link can be created byproviding on a web page the textual information and a hyperlink thatwhen activated automatically plays a digital audio file containing arecording of the verbal description. In another illustrative embodiment,an interactive television screen can provide the textual description, aphotograph, and a link that when activated provides a three-dimensional,360-degree view of the item. In yet another illustrative embodiment, acomputer document can provide a photographic description and a link to arecording that provides both a video description and a verbal narrativedescription of characteristics of the item. In still anotherillustrative embodiment, a general textual description of any one ofgroup of items can contain a number of links, each link associated witha photographic description of one item in the group. Thus, if the baileehas five books of the same author and title, five links can be formedfrom a general textual description of the group of books, each linkconnecting to a corresponding photo for each of the five books.

[0080] At step 1200, when the item is offered for sale, the descriptionscan be provided to a potential third rightholder, such as, for example,a potential purchaser, lessee, renter, borrower, and/or licensee. Thedescriptions can also be provided to an actual third rightholder, aswell as to any stakeholder, including the first rightholder and/or thesecond rightholder.

[0081] Either upon a received request from the stakeholder, or in somecases automatically, any description can be rendered to the stakeholder.The term “render” can include any act of making the descriptionperceptible to the stakeholder. Accordingly, in one illustrativeembodiment, a textual (first) description of the item can be presentedon a screen along with another (second) description and/or a hyperlinkthat, when activated, causes the other (second) description of the itemto be rendered.

[0082] The quality of the descriptive information provided can be ratedby the receiver. For example, a third rightholder who receives orperceives the descriptive information can compare the quality of thatinformation against the third rightholder's own evaluation of the item.The third rightholder can then rate the quality of the informationprovided.

[0083] Under this approach, an identity of an individual who inspectsand describes the item can be provided along with the description of theitem. For example, an inspector named Alexandra can identify herself inan audiotaped verbal description of an item. Thus, a potential purchaserto whom Alexandra's description(s) are rendered can rate the quality ofAlexandra's description(s).

[0084] Upon aggregating a number of such ratings, such as by any form ofaveraging, included weighted averaging, Alexandra may be rated asproviding highly accurate item evaluations, particularly for certaintypes of items. Accordingly, potential or actual stakeholders can placea high degree of confidence in Alexandra's ratings, at least for thosetypes of items for which Alexandra has shown superior inspection andevaluation abilities. Moreover, the bailee can use these stakeholderratings to evaluate Alexandra's performance and compensate heraccordingly.

[0085] System 20

[0086]FIG. 2 provides a block diagram of an exemplary embodiment of asystem 20 of the present invention. As an initial matter, it suffices tosay that, using the description of method 10 and/or method 40, one ofordinary skill in the art can implement the functionality of method 10and/or method 40 via system 20 utilizing any of a wide variety ofwell-known architectures, hardware, protocols, and/or software. Thus,the following description of system 20 can be viewed as illustrative,and should not be construed to limit the implementation of method 10and/or method 40.

[0087] Moreover, although depicted primarily as an information system,system 20 can include and/or be included in an item processing systemthat can also include facilities, tools, hardware, software, and/orpersonnel, etc., for receiving, staging, inspecting, appraising,storing, packaging, and/or shipping, etc., items.

[0088] Within system 20, a bailee information device 2100 can be used bya bailee to communicate regarding one or more items with variousstakeholder information devices (e.g., returner information device 2200,seller information device 2300, buyer information device 2400,manufacturer information device 2500, distributor information device2600, etc.) and with returns server 2800. Bailee information device 2100can also be used to manage databases, query databases, enter returninformation for an item, track inventory of items, create advertisementsfor items, auction items, process purchases of items, charge purchasers,generate return information reports, etc.

[0089] Bailee information device 2100 can be connected to network 2700.Also connected to network 2700 can be various stakeholder informationdevices 2200-2600, which can be used, for example, by a returner torequest a return authorization for an item, receive notification that abailee has received the returned item, receive notification that thereturner has been credited for the return of the item, and/or receivereturn information, etc. As another illustrative example, a stakeholderinformation device can be used by a seller to host databases, managedatabases, receive a return authorization request, to provide a returnauthorization, to receive notification of receipt of an item by abailee, to receive a request for item information, to provide iteminformation, to receive notification of payment sent by a bailee thatsold an item to a buyer, and/or receive return information, etc. As yetanother illustrative example, a stakeholder information device can beused by a buyer to review an advertisement regarding an item, to submita bid for an item, to receive notification of a successful bid for theitem, to provide payment information for the item, and/or to receivereturn information, etc.

[0090] Returns server 2800 also can be connected to network 2700 and canbe used to host one or more databases 2900, serve files, serve e-mail,etc. Returns server can be a computing device of any sort. Similarly,any of information devices 2100-2600 can be used to host one or moredatabases (not shown).

[0091] Network 2700 can electronically link physically distantinformation devices 2100-2600, and returns server 2800, so thatinformation can be transmitted and/or exchanged there between. Network2700 can have any architecture, including a direct connection, a localarea network, a wide area network such as the public switched telephonenetwork and/or the Internet, an extranet, and/or a combination thereof.Network 2700 can be a packet-switched, a circuit-switched, aconnectionless, or connection-oriented network or interconnectednetworks, or any combination thereof. Network 2700 can be orientedtoward voice, data, or voice and data communications. Moreover, atransmission media of network 2700 can take any form, includingwireline, satellite, wireless, or a combination thereof.

[0092] From a hardware standpoint, any information device, includingbailee information device 2100 and/or any stakeholder information device2200-2600, can be, for example, a landline or wireless telephone,facsimile, personal computer, personal information manager, personaldigital assistant, handheld computer, data terminal, or other similardevice.

[0093] Information Device 3100

[0094]FIG. 3 is a block diagram of a typical exemplary informationdevice 3100, which can symbolize bailee information device 2100, anystakeholder information device 2200-2600, and/or returns server 2800.Information device 3100 can include well-known components such as one ormore processors 3120, one or more memories 3140 containing instructions3160, one or more input/output (I/O) devices 3180, and one or morenetwork interfaces 3190.

[0095] In one embodiment, each processor 3120 can be a general purposemicroprocessor, such a the Pentium series microprocessor manufactured bythe Intel Corporation of Santa Clara, Calif. In another embodiment, theprocessor can be an Application Specific Integrated Circuit (ASIC) whichhas been designed to implement in its hardware and/or firmware at leasta part of a method in accordance with an embodiment of the presentinvention.

[0096] Any memory 3140 can be coupled to a processor 3120 and can storeinstructions 3160 adapted to be executed by processor 3120 according toone or more actions and/or activities of a method described herein.Memory 3140 can be any device capable of storing analog or digitalinformation, such as a hard disk, Random Access Memory (AM), Read OnlyMemory (ROM), flash memory, a compact disk, a magnetic tape, a floppydisk, and any combination thereof.

[0097] Instructions 3160 can be embodied in software, which can take anyof numerous forms that are well-known in the art. For example, system 20can utilize one or more databases having a flat file or a relationalorganization, and a centralized or distributed architecture. Forinstance, those of skill in the art can tailor items such as an SQLdatabase to provide the functionality of method 10 and system 20. Onesupplier of such database items is Oracle Corporation, of RedwoodShores, Calif. Moreover, software tools such as EDI, FTP, HTTP, HTML,XML, cXML, XSL, and WAP can be utilized for communications betweeninformation devices. Additionally, system 20 can utilizeplatform-independent and/or network-centric software tools such as, forexample, Java or JavaScript. Furthermore, system 20 can utilize auctionsite development and maintenance tools such as LiveExchange from Moai ofSan Francisco, and Mountain View, Calif. (http://www.moai.com),warehouse management system (WMS) software such as WarehousePRO fromLogility Inc. of Atlanta, Ga. (http://logility.com), and/or networkingsoftware such as Community from Thundercloud Networks of Cambridge,Mass. (http://www.thundercloudnetworks.com).

[0098] Any input/output (I/O) device 3180 can be an audio and/or visualdevice, including, for example, a monitor, display, keyboard, keypad,touchpad, pointing device, microphone, speaker, video camera, camera,scanner, and/or printer, including a port to which an I/O device can beattached or connected.

[0099] Any network interface 3190 can be a telephone, a traditional datamodem, a fax modem, a cable modem, a digital subscriber line interface,a bridge, a hub, a router, or other similar devices.

[0100] For more details regarding embodiments of method 1, system 2, anddevice 3, the reader is referred to the provisional application titled“System and Method for Managing Returned Goods”, Ser. No. 60/181,931,(Attorney Docket No. 11445-1) filed Feb. 11, 2000, and to a provisionalapplication, titled “System and Method for Managing Returned Goods—Part2”, Ser. No. 60/185,713, (Attorney Docket No. 11445-4) filed Feb. 29,2000, each of which is incorporated by reference herein in its entirety.More specifically, the reader is referred to those portions of each ofthe above described provisional applications titled “IVY Logical ITArchitecture” and the following eleven pages of flowcharts, as well asthose portions titled “IvyVentures.com Process Narratives” and “ProcessSteps for Ivy Ventures”.

[0101] There are substantial advantages of the methods and systems ofthe present invention over the known methods and systems. Comparingembodiments of the present versus traditional reverse logistics methods,numerous differences and advantages are apparent. For example, returnsare traditionally randomly agglomerated into large bulk packages andsold by the pound. Embodiments of the present invention, however, alloweach returned item to be offered and sold individually, at that item'smarket price, and thereby delivered to the buyer as a parcel.

[0102] Moreover, embodiments of the present invention can shift thecosts of consumer returns from merchants and manufacturers to otherconsumers that are willing to pay for the remaining value in thereturned goods. This can create a win-win-win situation for merchants,manufacturers, and consumers.

[0103] For merchants, embodiments of the present invention provide anovel and inventive process by which returned goods can be sold directlyto consumers through a business-to-consumer auction site. Thus,embodiments of the present invention can allow a maximum value to be setfor items as early as possible in the life of a item. The auctionmentality can even provide the opportunity to sell consumer returnsabove market values. Additionally, embodiments of the present inventioncan improve cash flow for the merchant due to sales and can reduceinventory levels, minimize transaction costs, and provide data trackingservices that can help reduce returns. These data tracking services canalso allow merchants to identify consumers who abuse returns policies,identify items that a high return rate, and clearly delineate the costsof returns. Moreover, embodiments of the present invention can removemerchants from the business of managing returns, which can help themfocus on customer service and selling, Further, embodiments of thepresent invention can enable merchants to loosen their returns policies,which can thereby reduce customer buying resistance and switching ofmerchants. In addition, by utilizing independent and trained third partyexperts, embodiments of the present invention can bring a higher levelof objectivity to the handling of returns.

[0104] For manufacturers, embodiments of the present invention can allowthe recovery of a much higher portion of the costs of items. Unlikeknown processes, embodiments of the present invention can allow amaximum value to be set for an item as early as possible in the life ofthe item. The auction mentality can even provide the opportunity to sellconsumer returns above market values. Thus, embodiments of the presentinvention can improve cash flow due to sales, lower the total cost ofsales, and reduce inventory levels. Embodiments of the present inventioncan enable these cash flow and cost advantages by allowing consumers toshare the costs of returns, instead of sharing these costs only betweenmerchants and manufacturers. In addition, by utilizing independent andtrained third party experts, embodiments of the present invention canbring a higher level of objectivity to the handling of returns. Further,embodiments of the present invention can provide improved returnstracking services that can help manufacturers quickly spot design,manufacturing, and/or marketing defects, the alleviation of which canreduce returns and improve consumer and merchant goodwill. Moreover, byproviding an efficient method for reselling returns, embodiments of thepresent invention can create societal goodwill by lessening the amountof returned items disposed of by landfilling.

[0105] For consumers, embodiments of the present invention can provideaccess to nearly-new items without the retail price tag, and can thusenable the purchase of better quality items than current auction sites.Moreover, embodiments of the present invention can provide a better mixof experience, price, quality, and selection than shopping attraditional bricks-and-mortar or Internet “off-price” merchants. Also,embodiments of the present invention can provide reduce consumer fearsby providing secure shopping, by offering a liberal returns policy, andby providing a reputable vendor from who to purchase. Thus, forpurchasers, embodiments of the present invention can make catalog andon-line shopping more appealing, because the hassle of returns isminimized. Further, for buyers embodiments of the present invention canprovide the convenience of web-based shopping, including shoppingbaskets and gift deliveries.

[0106] Further advantages for consumers can include obtaining more andricher descriptive information about an item that what is traditionallyavailable, particularly from catalog and on-line vendors. Moreover,because the descriptive information can include an indicator of itsprovider, the consumer can ascertain what degree of trust to place inthat descriptive information.

[0107] Additional Embodiments

[0108] Optimization Engine

[0109] As described above, an embodiment of a system and/or method ofthe present invention can include a sales channel optimization enginethat can determine which sales channel(s) are best situated to offer anitem for sale. Thus, the optimization engine can be viewed as anautomated process that can maximize and/or optimize an item processingsystem's profit on the sale of items, in some cases regardless of whatthose items are or the condition that they are in. For each item that isprocessed by such a system, the optimization engine can find the“channel” or place of sale where the revenue and/or profit earned on thesale of that item is the highest.

[0110] To better understand various embodiments of the optimizationengine, consider the workings of an optimization engine that sells oneitem at a time. This particular optimization engine can be visualized ashaving four components:

[0111] 1. The ability to find and then define the set of “variables” ofthe item that has intrinsic worth to customers, that is, those variables(and their corresponding values) for which potential purchasers tend tobe willing to pay;

[0112] 2. The ability to determine, for most (if not all) possiblecombinations of that item's variables and/or values, the “channel”(and/or set of buyers) that yields the optimal profit on a sale of thatitem;

[0113] 3. The ability to obtain knowledge of the costs involved inuncovering the values associated with each of the item's variables,describing the values of the item, offering the item for sale, sellingthe item, handling the item, storing the item, and/or delivering theitem to the purchaser; and

[0114] 4. The ability to learn how variables (and the values associatedwith variables), costs, revenues, and/or profits change over time.

[0115] Thus, in some scenarios, it can be important to know why certainitems tend to sell for more or less than similar items. Items withbetter variable values (characteristics) tend to command higher marketvalue. For example, prior to the actual sale, we could expect that acomputer with a 1 GHz Pentium processor will sell for more money than acomputer with a 500 MHz Pentium processor, all else held equal. Ofcourse, on any given day, because of thin markets, etc., a computer witha 500 MHz processor may sell for a higher price than one with a 1 GHzprocessor, all else held equal. But prior to the actual sale we expectthat a computer with a 1 GHz processor will command a higher price thanthe 500 MHz computer.

[0116] A different example involves a “Barbie doll”. Apparently, aBarbie doll without a box can command 50% less than the doll with itsbox. So, according to these examples, processor speed and condition ofbox are variables that command worth for their respective items.Conversely, processor speed is an variable that does not typically applyto Barbie dolls, whereas computer shoppers might not financiallyappreciate the condition of the computer's packaging.

[0117] Knowledge of the item's variables and/or values can aid theoptimization engine in choosing the appropriate sales channel, which canbe the channel that yields the maximum selling price and/or profit. Inmany cases the highest profit is realized by selling at the highestprice. To determine the channel having the highest expected sellingprice, the optimization engine can calculate the expected price of aitem (with given variables and/or values) for all appropriate channelsand then choose the channel yielding the highest expected price.

[0118] To do so, the optimization engine can determine appropriatechannels. Such channel determinations can include:

[0119] (a) Should the item be sold or thrown out?

[0120] (b) If the item should be sold, should the item be:

[0121] i. auctioned,

[0122] ii. sold to a liquidator,

[0123] iii. refurbished,

[0124] iv. or, given to charity?

[0125] (c) If the item should be auctioned,

[0126] i. Which auction site should be used: eBay, Yahoo!, some other3rd party site, or the item processing system's own site?

[0127] ii. How should the title and description of the item be worded?

[0128] iii. How should the auction be designed (e.g., reserve, length oftime, etc.)

[0129] Additional questions can be envisioned in the determination ofappropriate channels to consider. For example, depending on one's viewthe world, it might be possible to argue that there are a nearlyinfinite number of channels. For example, it might be possible that athree-day auction can be viewed as a different “channel” than a two-dayauction (because it might reach a different market and/or set ofpotential buyers). Another viewpoint suggests that each channelcomprises one or more channel variables, such as “auction site”, each ofwhich have a plurality of channel values, such as eBay and Yahoo!,associated therewith.

[0130] As another example, and continuing with the computers and dollstheme, on average it might be more profitable to auction computers oneBay, but dolls might tend to sell for higher prices and/or profits onAmazon. Similarly, it might be better to auction desktop computers witha low or zero reserve, while it might be advantageous to auction dollswith a reserve that is a substantial fraction of retail worth. Knowledgeof the item's significant channel-based variables could also help inother ways. For instance, there might be “day of week” effects that varybased on the item or its variables, or, the best title might varydepending on each item's condition. For example NIB, meaning “New InBox,” is a word common to many eBay titles and tends to add worth.

[0131] Once the variables that have market worth are known, and themaximum expected revenue and/or profit for any valuable set of variablesfor an item is known, then the optimization engine can guide the valueanalyst to look for and/or disregard certain variables during theinspection process. For certain items (such as items that arrive in bulkwithout a box), inspection might be costly. For example, it might takethe value analyst a nontrivial amount of time—say 15 minutes—todetermine the size of a computer's hard drive. If the value analyst'stotal wage (including all benefits, etc.) is $20 per hour, then thecomputer inspection costs $5 of the value analyst's time. Assuming thesystem keeps 10% of the revenue of any given sale, the inspectionprocess must uncover an additional $50 of benefit to be profitable.Thus, for this example, if identifying hard drive size is not likely toprovide at least an additional $50 in profit to the item processingsystem, then inspection of hard disk size should not be undertaken.

[0132] Therefore, the optimization engine can perform a cost-benefitanalysis for all items, prior to inspection, to determine whether it isprofitable to search for and/or identify the variables and/or valuesthat have been determined to add benefit.

[0133] As a complement to knowledge of the benefit-adding variablesand/or values, knowledge of the costs associated with each item can behelpful to the cost-benefit analysis. Such associated costs can includethe costs of processing each particular item, such as for example, thecosts associated with inspecting, describing, offering for sale,handling, storing, insuring, selling, packaging, shipping, delivering,and/or servicing the item. The associated costs can also include othercosts, such as for example, the cost of obtaining and/or managing costand/or benefit data, the cost of the customer service time spentanswering questions, and the processing of any (unanticipated) returns,should a purchased item be returned to the system. These costs can beassigned to those items for which they are incurred, and/or can beallocated across item categories, families, and/or all items.

[0134] Finally, the optimization engine can be constantly updating andlearning about the variables that bring benefit and the costs to obtainthat benefit. This learning can take place in at least three ways.

[0135] First, a “snapshot” of data can be collected from all availablechannels on a periodic (e.g., weekly, daily, and/or hourly, etc.) and/oraperiodic basis. Analysis of historical data, possibly in combinationwith this snapshot data, can reveal trends in the marketplace. Knowledgeof these trends can allow for more accurate channel selection. Forexample, eBay might currently be the best place to auction Barbie dolls,but Yahoo! auctions might be trending toward displacing eBay as thepreeminent Barbie doll site. Snapshot data on the volume of items sold(and items offered for sale) on eBay and Yahoo! might show this trend asit is occurring, thus allowing a continuous real-time improvement of theoptimal channel decision made by the optimization engine. The snapshotdata can also aid in assessing how the set of variables (and the valueof each variable) are changing over time.

[0136] Processor speed is an example of a variable having an associatedvalue that can have a changing worth and/or benefit. A used personalcomputer having a 1 gigahertz processor might currently have asubstantial amount of worth in the market, but in two years this samecomputer might be almost worthless. The benefit the optimization engineassociates with a processor speed value of “1 gigahertz” thus can adjustin a timely fashion to reflect the ongoing changes in market conditionsand/or valuation.

[0137] Second, historical data can be used to help measure the itemprocessing system's costs of bringing items to market. As discussedabove, some of these costs can include costs associated with inspecting,describing, offering for sale, handling, storing, insuring, selling,packaging, shipping, delivering, and/or servicing the item. The system'sdata collection procedures can record the costs (time and otherwise)associated with the sale of each item, and with managing the processgenerally. For items that the system has sold previously, the system candirectly use the historical costs recorded in the system's database toestimate current costs. For items that the system has not yet sold, thesystem can use average historical “item category” costs as a preliminaryestimate of the system's costs of bringing the new items to market. Oncethe system has sold a particular item, the system's database can beupdated, and the system can have a more precise estimate of the system'scosts of processing going forward.

[0138] Third, ongoing “experiments” can be performed on a periodicand/or aperiodic basis. In these experiments, deliberately and/orrandomly chosen items can be sold on channels that might not be expectedto be “optimal.” For example, in one of these experiments a computer canbe sold on Yahoo!, even though the optimization engine predicts that itsbest place of sale is on eBay. Or, a low reserve price can be set on aBarbie doll, even though (hypothetically speaking) the optimizationengine predicts that a high reserve price on Barbie dolls brings maximumrevenue. All values associated with the optimization engine, such as forexample, which channel to choose, what words to place in the title anddescription, and/or the length of an auction (if auctioned), etc., canbe tested during these “experiments.” Likewise, any other valuesconsidered by the optimization engine can be tested. Since theoptimization engine can be designed to always yield, for example, themaximal profit, most of these experiments are likely to yield lessprofit than if an experiment had not occurred. However, if an experimentyields a significant increase in profit over expected profit, then thatexperiment can influence the optimization engine's future determinationsand/or selections.

[0139] Another method of improving the optimization engine'sdeterminations involves randomization. The use of randomization to findthe “maximum” of a function with unknown curvature has a long history ineconometrics. Thus, formal maximization algorithms involvingrandomization, such as “simulated annealing,” can be applied to improvethe function of the optimization engine.

[0140] The optimization engine can be more sophisticated than discussedso far since the item processing system the optimization engine canserve is capable of processing a nearly unlimited number of items eachday, and easily upwards of tens of thousands of items per day. To meetthis load, the optimization engine also can perform the following tasks:

[0141] (5) Calculate how best to group (or not group) the items; and

[0142] (6) Forecast future shipments of items.

[0143] Concerning task (5), optimally selling groups of items can bemore complicated then optimally selling only one item for at least tworeasons. First, the number of possible combinations of items that can besold is large. For example, if the item processing system receives nitems to sell, the system can sell n individually, n−2 individually and1 group of 2 bundled items, etc. By way of further example, suppose thatin any given day, the item processing system receives 1000 computers and1000 Barbie dolls to sell. The system can sell each of the 1000 Barbiedolls and computers separately; the system can sell 800 computersbundled together, 700 Barbie dolls bundled together, and 200 and 300computers and dolls separately; or, the system can sell 1000 bundles of1 Barbie doll and 1 computer, as well as numerous other combinations.With multiple simultaneous items to bundle and/or sell, the number ofoptimization engine calculations can increase quite a bit because thenumber of possible combinations of items can increase geometrically.

[0144] Second, calculation of the optimal channel for a given bundle ofitems can be complicated because the price the item processing systemexpects to earn on any particular channel might be influenced by thesystem's supply of items to that channel. Intuitively, selling a largegroup of identical items on a given channel—when the channel has nothistorically seen that many identical items at once—might “flood” thatchannel. For example, 100 desktop Pentium III computers might typicallybe sold on eBay in a given week. If the system tries to sell 1000 suchcomputers on eBay over a three day period, then the clearing price ofthese computers is likely to be lower than the average eBay sellingprice of these computers. So, in addition to its other tasks, theoptimization engine can form forecasts of how the supply of items to agiven channel might alter the market price of identical and/or similaritems for sale on that channel. Likewise, per item inspection costsmight greatly increase if a flood of computers must be processed withinan unusually short period of time.

[0145] Finally, task (6) (forecast future shipments) can be viewed asrelated to task (5) (how best to group or not group items). The itemprocessing system's decision to process and/or sell similar items in“bulk” or piece-by-piece over a number of weeks (and possibly through anumber of different channels) can depend on the system's forecasts offuture shipments of items to the system. For example, suppose the itemprocessing system receives a shipment of 1,000 computers from Egghead.If the system has historically processed weekly shipments of only 100computers from Egghead and forecasts future weekly shipments of 100computers, then the system might be best served by processing andselling the 1000 computers from the current shipment in bulk, ratherthan individually. In contrast, if the item processing system does notexpect any more computer shipments from Egghead for a while, then thesystem might be able to spread the processing and/or sale of 1,000computers out over a number of weeks if that strategy yields the maximumamount of revenue and/or profit.

[0146] Similarly, the optimization engine can benefit from forecasts offuture shipments to perform “risk management” on the item processingsystem's warehouse. If the system's warehouse is nearly full, knowledgeof future shipments can be beneficial to determining the way in whichthe system sells any current inventory. For example, suppose thesystem's warehouse is nearly full and the system receives a shipment of1,000 low-benefit Barbie dolls. If the system expects to receive ashipment of 200 high-benefit computers, and the space required by the200 computers is the same as the 1,000 dolls, the system can bulk-sellthe system's current dolls to leave space for the 200 computers that thesystem can try to sell individually.

[0147] Related to this, the optimization engine can use the itemprocessing system's warehouse to exploit weekly or seasonal patterns insales. Thus, if the system's warehouse is not nearly full, then thesystem can store certain items for a number of days, weeks, or months totry to exploit expected weekly, monthly, or seasonal surges in sales.For example, consumers might be willing to pay a premium to purchasecomputers prior to Christmas, when demand is typically very high.Assuming it is most profitable to do so, the system can store computersin the system's warehouse in November and early December to unload allof the computers on eBay (or through another channel) prior toChristmas.

[0148] Thus, the optimization engine can be viewed as a process that canmaximize the item processing system's profits, in the short-term and/orlong-term. To do so, the optimization engine can evaluate (a) what thesystem currently has for sale, (b) what the system expects to receive toprocess and/or sell, (c) the state of the system's warehouse, (d) thesystem's current and historical expected costs of bringing items tomarket, and, (e) current and historical conditions on each possiblechannel to determine (i) the optimal sales channel appropriate for eachitem or set of items the system receives, (ii) the variables of eachitem that have benefit and thus should be the focus of inspection by thevalue analysts, and (iii) the optimal amount of inspection timeperformed by the value analysts. The optimization engine process canchange over time due to (1) the use and analysis of current andhistorical snapshots of market data, (2) analysis of the system'shistorical costs of bringing items to market, and (3) channel“experiments” performed on at least a fraction of the items the systemsells.

[0149] Method 40

[0150]FIG. 4 is a flowchart of an exemplary embodiment of a method 40 ofthe present invention, which incorporates at least some of theactivities of the optimization engine. Method 40 can be implemented onany information device 3100, including for example, bailee informationdevice 2100 and/or returns server 2800.

[0151] Referring to FIG. 4, at activity 4100 an item category can bedetermined or chosen. For example, an item category could be personalcomputers or dolls. The item category can be chosen randomly orpurposefully. Moreover, the item category can be determined from itemcategories found, for example, on major on-line auction sites. Further,an item category can be viewed as characterizing a set of auctioned,sold, and/or purchased items that share at least one variable value.

[0152] At activity 4200, market, third party, and/or internal data foritems in the item category can be obtained. This data can be obtainedfrom a database containing data for items from many different itemcategories. This data can include current and/or historical data,including channels, costs, prices, quantities, descriptions, conditions,and/or terms, etc., for items associated with the item category. Costdata can include, for example, any costs related to handling,inspection, appraisal, description, customer service, storage, packing,shipping, returns processing, and/or data storage, etc. Channel data caninclude, for example, data associated with channels such as liquidators,returns retail stores, etc., and/or other well known channels forselling returned, used, and/or surplus items. Such data can furtherinclude, for example, posting, bidding patterns, selling patterns,shipping terms, returns policies, inventory constraints, and/or channelflooding information, etc.

[0153] As another example, associated with the personal computer itemcategory could be data that includes, for each of several channels,selling prices and descriptions under which the items were sold. Forchannels that involve auctions, the data could also include auctiondesign data, such as auction length, minimum bid requirements, etc.

[0154] At activity 4300, based on the obtained data, significant channeland item variables and/or values for items in the item category can bedetermined. For example, significant item variables for personalcomputers could be manufacturer, processor type, processor speed, harddisk size, RAM amount, etc.. For the manufacturer variable, significantvalues could be: Compaq, HP, Dell, and Gateway. For the hard disk sizevariable, significant values could be: less than 2 gigabytes and greaterthan or equal to 2 gigabytes. For the RAM amount variable, significantvalues could be: 16 megabytes, 32 megabytes, 64 megabytes, 128megabytes, and 256 megabytes. Other potential item variables couldinclude: model; desktop vs. laptop; CD speed; modem speed; video cardresolution; length of time since manufacture; length of time since soldto first customer; original retail price; current new price at samplee-tailer and/or store; dimensions (height, weight, and depth); color;does it work?; manuals included?; included software; installed software;scratched, dented, or cosmetically altered; and/or “value analyst'ssubjective ranking (1 to 10 scale)”; etc.

[0155] Continuing with this example, for personal computers asignificant channel variable could be “auction?” and/or “auction sites”.Significant values associated with the auction sites variable couldinclude: eBay, Yahoo!, and/or system (signifying an auction held on thesystem's auction site). Another significant channel variable could be“Liquidators?”. Other significant channel variables could includeauction length, auction reserve, photo annotation, voice annotation,video annotation, analyst identification, etc. Yet other significantchannel variables could include the significant (and/or other) itemvariables. Further, significant channel values could include thesignificant (and/or other) item values.

[0156] A determination of which variables and/or values are“significant” can reflect those statistically significant results of astatistical analysis performed upon the database. For example, certainwords in the descriptions of items advertised on web-based auction sitescan be analyzed against the selling prices of those items using linearregression analysis. The variables of that analysis could correspond tothe words in the textual portion of the descriptions. The coefficientsof that analysis could correspond to the correlation of the presence ofthe words to the selling price.

[0157] Prior to the regression analysis, the textual descriptions ofeach item in the item category can be concatenated, and a frequencycount of each word in the concatenated description can be performed.Articles such as the words “a”, “an”, “the”, etc., and otherpre-identified words of little and/or no significance can be eliminatedfrom the frequency count to arrive at a ranked list of words. All of theremaining words, those words having a frequency above a pre-determinedthreshold, and/or certain pre-determined words, can be characterized as“keywords”. These keywords can then be subjected to the linearregression analysis. As a variant on this process, certainpre-determined combinations of words (i.e., phrases), can be processedinstead of or in addition to individual words alone.

[0158] Thus, for example, a keyword analyis of advertised descriptionsof personal computers could indicate, for example, that Dell, Intel, 20gigabytes, and 256 megabytes are words/phrases that, when they appear inthose descriptions, have a high statistical likelihood of correspondingto higher than average selling prices, and thus are significant values.

[0159] Alternatively, based on prior knowledge and/or estimates thatvariables such as manufacturer, processor type, processor speed, harddisk size, RAM amount, etc. are likely to be significant (e.g.,correlated with higher selling prices), this information can beconfirmed by regressing the selling prices against these known and/orlikely variables and/or their values, which can be manifested as theirassociated keywords. If the regression coefficients for any variableand/or value turn out to be substantially lower than expected, thatvariable and/or value can be ignored and/or removed from the analysis.In yet another alternative, determining which variables and/or valuesare “significant” can be based solely on prior knowledge and/orestimates.

[0160] Additional significant variables and/or values also can bedetermined from the obtained data. For example, significant inventoryvariables can include: seasonal item, best selling season, worst sellingseason, cost of carrying, available storage space, storage location,quantity in storage, expected inflows, expected outflows, etc. Asanother example, for returns of items previously sold by the itemprocessing system, significant returns variables can include: likelihoodof return, cause of return, cost to re-inspect, cost to refurbish, costto dispose, warranty policy, etc.

[0161] At activity 4400, an expected benefit of identifying eachcombination of significant variables and/or values can be obtained, forexample, from the data obtained in activity 4200. A benefit can be, forexample, a selling price, a profit, an incremental profit, etc. Anexpected benefit can be a statistically determined benefit, such as anaverage, a mode, etc. Thus, for example, an average incremental profitassociated with inspecting and advertising hard disk size for a personalcomputer can be identified from data associated with the personalcomputer category.

[0162] As activity 4500, an expected cost associated with identifyingeach combination of significant variables and/or values can be obtained,for example, from the data obtained in activity 4200. A cost can be aninspection cost, a handling cost, etc., and can be an aggregate and/oran incremental cost. An expected cost can be a statistically determinedcost, such as an average, a mode, etc.. Thus, for example, an averageincremental cost associated with inspecting hard disk size, once themanufacturer is known for a personal computer, can be identified fromdata associated with the personal computer category.

[0163] For items in the item category, at activity 4600, expected costscan be compared to expected benefits to determine optimal item variablesand values, and an optimal inspection order. For example, the cost ofinspection of a variable might be substantial and, thus, when comparedto the benefit associated with that variable, can dictate whether thevariable's value should be uncovered or not. By way of further example,contributors to the potentially substantial costs of inspection caninclude physical labor time, use of specific required tools forinspection, cost of acquiring data sets, computing and server time,labor down-time (if waiting on search results), opportunity costs, etc.

[0164] Moreover, the inspection cost for identifying a variable's valuealso might be either independent of or dependent upon the inspection ofother variables. For example, the cost of measuring the amount of RAMloaded in a laptop computer might be independent of identifying thecomputer's manufacturer. In another example, however, once the laptopcomputer has been started, and its processor speed has been determined,there may be only a small additional cost to determine the computer'shard drive size versus if only hard drive size alone was inspected uponstart-up. Thus, the cost of inspecting a variable can depend upon whereone is in the inspection process and/or what has been inspectedbeforehand. Therefore, the optimization engine can identify the expectedbenefit-maximizing order of inspection and/or the optimal order ofinspection.

[0165] Thus, prior to actually inspecting any specific item, dataassociated with that item's category can be analyzed to determineoptimal item variables and/or values to inspect, and an optimal order inwhich to do so. With this information in hand, any specific item in theitem category can be optimally inspected. Thus, at activity 4700, thepreviously determined optimal item variables for a specific item can beinspected in their optimal order to identify the specific item'scorresponding values.

[0166] At activity 4800, based on the inspection outcome, that is, theidentified values corresponding to the optimal variables, expected costsand expected benefits associated with various channel variables and/orvalues can be compared to determine optimal channel variables and/orvalues. Thus, for example, knowing that a specific computer has an IntelPentium processor and a 500 megabyte hard disk, the cost-benefitdetermined optimal channel values might be: auction, eBay, 3 day, noreserve, minimal description, without photo or voice annotation, novalue analyst identification, no warranty, etc..

[0167] At activity 4900, based on the optimal channel variables and/orvalues, the specific item can be advertised and sold.

[0168] At activity 4950, cost and/or benefit data gathered during, forexample, activities 4700 and/or 4900, can be fed back to the databasepopulated during activity 4200. For example, when a specific item issold, information can be gathered and/or stored, such as, for example,information related to the specific item's total cost, inspection cost,inventory cost, handling cost, insuring cost, packaging cost, shippingcost, bid history (if any), bidder information (including name, address,e-mail address, and/or demographic information, etc.), selling price,selling date, selling time, purchaser, method of payment, method ofshipping, and/or shipping address, etc. In some circumstances,information associated with a specific item can be aggregated acrosssome and/or all items having similar values for certain variables.Moreover, such information can be statistically analyzed to detect, forexample, averages, standard deviations, correlations, and/or trends,etc.. Because this information can be generated within the itemprocessing system and/or the optimization engine process for a specificitem, this information can be considered as internal data.

AN EXAMPLE

[0169] To assist with the understanding of some of the activities ofmethod 40, a more detailed example is now provided. FIG. 5 containstables highlighting exemplary statistics and expected benefits thatcould be obtained from textual and/or keyword analysis of sold itemdescriptions, linear regression techniques, prior knowledge, and/orvarious outside sources, as previously described for activities 4200through 4400 of FIG. 4. In the example of FIG. 5, it has been determinedthrough some and/or all of these techniques that two variables of acomputer can command statistically significant market worth—theprocessor type, and the size of the hard drive. In reality, buyers mightalso appreciate other variables. Moreover, in reality, buyer mightdifferently appreciate Intel Celeron chips versus Intel Pentium IIIchips versus AMD Athlon chips etc. Similarly, they might differentlyappreciate 1 GB, 2 GB, 3 GB, and 4 GB hard drives. However, for thepurposes of this example—which is intentionally kept simple for clarityof exposition—it is assumed that buyers only care whether or not theprocessor is Intel or not and whether or not the hard drive size isgreater than or equal to 2 GB.

[0170]FIG. 5 includes several exemplary probability tables, including anexample of a “joint probability” table that could be returned atactivity 4200 and/or 4300. Each cell in this table represents theprobability that a particular combination of processor speed and harddrive size occurs in a computer that might be and/or has been receivedby the item processing system. For example, the top left cell of thistable is the probability (0.40) that a computer to be processed willcontain an Intel processor and a hard drive size greater than or equalto 2 GB in size.

[0171] Notice that the probabilities in both the rows and the columns ofthe joint probability table sum to 1.0. This is because of theassumption that all computers have either Intel or Not Intel (called“Budget”) processors and have either a hard drive size less than (“<”) 2GB or greater than or equal to (“>=”) 2 GB. Thus, this table lists theexhaustive set of possibilities for the two variables of computers andthe probabilities therefore should sum to 1.0.

[0172] Based on the data in the joint probability table, “marginal” and“conditional” probabilities of the values for the processor and harddisk size variables can be calculated. The “marginal” probability of anIntel chip is the probability the computer has an Intel chip regardlessof the hard drive size. This probability (0.45) is the sum of theprobability that the computer has an Intel chip and a hard drive size <2GB (0.05) and the probability that the computer has an Intel chip and ahard drive size >=2 GB (0.40). Similarly, the marginal probability thatthe computer has a hard drive size >=2 GB is 0.60, which is the sum ofthe probability that the computer has a hard drive size >=2 GB and hasan Intel processor (0.40), and the probability that the computer has ahard drive size >=2 GB and has a Budget processor (0.20).

[0173] Determination of the conditional probabilities, listed below thetable containing marginal probabilities, is slightly more complicated.The probability that the processor is an Intel, given that it is knownthat the hard drive size is >=2 GB, is notated as P( Intel|>=2 GB). Thisprobability (0.67) is equal to the probability that the computer has anIntel chip and a hard drive size >=2 GB (0.40), divided by the marginalprobability that the computer has a hard drive size >=2 GB (0.60).Conceptually, this probability tells us that if we know that the harddrive size is >=2 GB, then we can expect the processor will be an Intelwith probability of 0.67.

[0174] These marginal and conditional probabilities, in addition to theinformation in the exemplary Benefit table of FIG. 5, can be used todetermine the expected payoffs to inspection of the computer.Information like that listed in the exemplary Benefit table could bereturned by activity 4400. The Benefit table lists the expected revenuesearned, by channel (“Online Auction” or “Liquidation”) for all possiblecombinations of variable values. The Benefit table also lists theexpected revenue earned by channel if the value of one or both of thevariables is identified.

[0175] The expected revenue earned by channel for each combination ofvariable values can be uncovered using linear regression analysis. Forexample, to uncover the revenue-value combinations for a specific onlineauction site, historical computer prices from this site can be regressedon all the possible combinations of values. In this example, there arenine possible combinations of values for a computer: (Intel, >2 GB),(Intel, <2 GB), (Intel, unchecked), (Budget, >2 GB), (Budget, <2 GB),(Budget, unchecked), (unchecked, >2 GB), (unchecked, <2 GB), (unchecked,unchecked). Since there are two possible channel values in thisexample—online auction and liquidation—there are 18 (=2×9) differentpossible benefit-value combinations in the Benefit table.

[0176] Reading through the Benefit table, lines 1 and 2 show theexpected revenue earned at an online auction site (line 1) and from aliquidator (line 2) if a computer is sold with a known Intel processorand a known hard drive size of >=2 GB. Lines 3 and 4 show the expectedrevenues at an online auction site (line 3) and from a liquidator (line4) if a computer is sold with a known Intel processor and a known harddrive size of <2 GB. Lines 5 and 6 show the expected revenues at theonline auction site (line 5) and liquidation (line 6) if the processortype is known to be Intel but the size of the hard drive is NOTidentified. This does not mean that the hard drive is missing. Rather,it means that the hard drive size, which might be either <2 GB or >=2GB, has not been identified at the time of the sale. The remaining 12lines in this Benefit table show the expected revenue, by channel, forthe remaining combinations of values of the processor and hard disk sizevariables, including the possibility that one or more of the variablesis unchecked.

[0177] Directly from the Benefit table, it is possible to determine aninitial optimal selling channel for a computer having any combination ofthe listed values. For example, if it is known that a computer has anIntel processor and a hard drive size >=2 GB, then the Benefit tableshows that the computer should be sold at an online auction rather thana liquidator; the expected revenue from an online auction is $200(line 1) while the exact same computer would yield an expected revenueof only $120 (line 2) from a liquidator. For a different example,consider the case where neither the processor type nor the hard drivesize is inspected prior to sale. This computer will yield an inspectedrevenue at an online auction site of $30 (line 17), while the expectedrevenue from a liquidator for this exact same computer is $50 (line 18).Therefore, according to the Benefit table, a computer with neither theprocessor type nor the hard drive inspected should be sold to aliquidator.

[0178] For each possible combination of values for the variables ofprocessor type and hard drive size, the information in this Benefittable can be used to determine the initial optimal sales channel asfollows:

[0179] (Intel, >=2 GB) computer should be sold at online auction(expected benefit of $200 compared to $120),

[0180] (Intel, <2 GB) should be sold at an online auction ($150 comparedto $90),

[0181] (Intel, unchecked) should be sold at an online auction ($100compared to $70),

[0182] (Budget, >=2 GB) should be sold at an online auction ($100compared to $90),

[0183] (Budget, <2 GB) should be sold to a liquidator ($70 compared to$60),

[0184] (Budget, unchecked) should be sold to a liquidator ($60 comparedto $40),

[0185] (unchecked, >=2 GB) should be sold at an online auction ($140compared to $100),

[0186] (unchecked, <2 GB) should be sold at online auction ($90 comparedto $80), and

[0187] (unchecked, unchecked) should be sold to a liquidator ($50compared to $30).

[0188] Although the exemplary Benefit table of FIG. 5 enables thedetermination of an initial optimal sale channel for a computer havingany combination of the listed values after all inspection has takenplace (if inspection actually occurs), this Benefit table does notdetermine whether inspection of the value of one and/or both variablesshould occur.

[0189] In order to determine whether or not inspection of the processortype should occur at all, the optimization engine can “work backwards”.That is, the optimization engine can first calculate expected benefitsand expected costs associated with the inspection of the hard drive sizeassuming that the processor type has already been uncovered, and thenwith these calculations in hand, determine whether or not the hard drivesize should be inspected at all.

[0190]FIG. 6 provides an example analysis showing how this process canwork. Suppose we have already inspected the processor type and know thatit is an Intel, as shown in Scenario 1. The remaining decision regardswhether or not to inspect the hard drive size. If a hard drive size >=2GB is uncovered, then the computer should be sold at an onlineauction—this is the channel yielding the maximal expected benefit for an(Intel, >=2 GB) computer—and the expected benefit from this channel is$200. Given it is known that the processor is an Intel, the probabilitythat a hard drive size >=2 GB is uncovered is P(>=2 GB|Intel), 0.89.Similarly, if a hard drive size <2 GB is uncovered, which occurs withprobability P(<2 GB|Intel)=0.11, then the optimal channel for thiscomputer is an online auction as before, but the expected benefit isonly $150.

[0191] Therefore, prior to inspection of the size of the hard drive, theexpected benefit from inspection is (0.89)*$200+(0.11)*$150=$194.50.After inspection occurs, the expected benefit will be either $200 (ifthe hard drive is >=2 GB) or $150 (if <2 GB), but prior to inspectionthe expected benefit is $194.50.

[0192] If the size of the hard drive remains unchecked before bringingthe computer to sale, the expected benefit from the optimal saleschannel (in this case, a liquidator) is $100. Therefore, as long as theincremental cost of inspecting the hard drive given the processor typehas already been inspected is less than $94.50, inspection of the harddrive causes an increase in expected profits. In this example, it isassumed that the incremental cost of inspecting the size of the harddrive is $30. This implies that inspection of the hard drive shouldALWAYS occur if the processor type is known to be Intel. It also impliesthat, prior to inspection of the hard drive size, the expected benefit(net of inspection costs) of knowing that a computer has an Intelprocessor is $194.50−$30=$164.50.

[0193] Scenario 2 of FIG. 6 shows a similar analysis when it is knownthat the computer has a Budget processor. If a hard drive size >=2 GB isuncovered, then the computer should be sold at an online auction and theexpected benefit is $100. Given the processor is known to be a Budgetprocessor, the probability that a hard drive size >=2 GB is uncovered isP(>=2 GB|Budget), 0.36. Sirmilarly, if a hard drive size <2 GB isuncovered (occurs with probability P(<2 GB|Budget)=0.64) then theoptimal channel for this computer is a liquidator and the expectedbenefit is $70.

[0194] Therefore, given it is known the processor is Budget but prior toinspection of the size of the hard drive, the expected benefit frominspection is (0.36)*100+(0.64)*70=$80.80. Analogous to Scenario 1,after inspection occurs the expected benefit will be either $100 (if thehard drive is >=2 GB) or $70 (if <2 GB), but prior to inspection theexpected benefit is $80.80.

[0195] If the size of the hard drive remains unchecked before bringingthe computer with a known Budget processor to sale, the expected benefitfrom the optimal sales channel (in this case, a liquidator) is $60.

[0196] Therefore, when the processor is known to be Budget the harddrive size is NEVER inspected. This is because the $30 cost ofinspection outweighs the gain: $80.80−$60=$20.80.

[0197] At this point it is known that if the processor is inspected andfound to be Intel, the expected remaining net benefit is $164.50($194.50−$30), while if the processor is inspected and found to be aBudget, the expected remaining net benefit is $60.

[0198] Prior to inspection of the processor type, the probability thatan Intel computer is inspected is 0.45 implying that the probabilitythat a Budget computer is inspected is 0.55. Given the cost ofinspecting the processor type is $20, the expected total net benefit ofinspecting the processor type is

(0.45)*$164.44+(0.55)*$60−$20=$87,

[0199] where 0.45 is the probability the computer has an Intelprocessor, $164.44 is the expected remaining net benefit of inspectiongiven the computer has an Intel processor, 0.55 is the probability thecomputer has a Budget processor, $60 is the expected remaining netbenefit of inspection given the computer has a Budget processor, and $20is the assumed incremental cost of inspecting the processor speed.

[0200] Whether or not inspection of the processor should occur dependson the expected remaining benefits if inspection of the processor doesnot occur.

[0201] Consider the outcome if the processor speed is unchecked. Thesize of the hard drive can still be inspected. If the hard drive isinspected and found to be >=2 GB, it should be sold at online auction(the optimal selling channel) for an expected benefit of $140 (line 13,Table B). If the hard drive is inspected and found to be <2 GB, itshould be sold at online auction (the optimal selling channel) for anexpected benefit of $90 (line 15). The probability that the hard drivesize is >=2 GB given that the processor type is unknown is the marginalprobability P(>=2 GB), which equals 0.60. Therefore, the expectedremaining benefit of inspecting the hard drive given the processor typeis unknown equals (0.60)*($140)+(0.40)*$90=$120. Since the incrementalcost of inspecting the hard drive is assumed to be $30, the expectedremaining net benefit is only $90. In contrast if neither the processortype nor the hard drive is inspected, the optimal sales channel is aliquidator, yielding an expected benefit of $50. Since $50 is less than$90, if the processor speed is unchecked the hard drive size shouldstill ALWAYS be checked, and, the expected remaining net benefit of acomputer with an unchecked processor speed is $90.

[0202] Returning to the issue about whether the processor speed shouldbe checked, the expected benefit of inspecting the processor speed is$87 while the expected benefit of a computer with an unchecked processorspeed is $90. Therefore, the analysis suggests that, prior toinspection, the processor speed should NOT be inspected, but, the harddrive size should be inspected. Thus, for this example, processor speedis not an optimal item variable, but hard drive size is an optimal itemvariable.

[0203] Because the analysis of this example yields only one optimal itemvariable, there is no optimal order in which to inspect that one optimalvariable. Because incremental inspection costs can depend upon what hasalready been inspected, however, situations where more than one optimalitem variable results can also result in an optimal order in which toinspect those optimal item variables.

[0204] One of ordinary skill in the art will instantly recognize thatthe approach illustrated in FIGS. 5 and 6 can be extended to considerany computationally reasonable number of channel and/or item variablesand/or values. By doing so, it can be determined, before a personalcomputer is inspected, what variables to inspect, and in what order.Moreover, based on the results of that inspection (or the pre-inspectiondetermination if the decision is reached to inspect no variables) and acomparison of expected costs to expected benefits, any number theoptimal channel values can be determined.

[0205] In addition, one of ordinary skill in the art will instantlyrecognize that, using a similar approach to that detailed in thepreceding examples, other optimal variables and/or values can bedetermined, including, for example, those related to handling,inventory, terms the sale, item warranties, packaging, shipment, etc.

[0206] Learning and Randomization

[0207] Finally, note that the optimization engine need not optimallydecide to inspect the optimal item variables identified at activity 4600of FIG. 4. Similarly, the optimization engine need not decide to sell anitem on the channel having the optimal channel values identified atactivity 4800 of FIG. 4. Instead, the optimization engine canoccasionally and/or purposefully make what appears to be a random and/ornon-optimal inspection, channel, and/or other decision. The optimizationengine can make these potentially non-optimal decisions so the resultingcosts and/or benefits can be gathered and used to update the data and/ordatabase upon which the optimization engine relies. This new data can beparticularly beneficial when the database is populated with data that isnot fully trusted, such as estimated data, data gathered from apotentially non-representative sample, and/or potentially outdated data.Moreover, such adaptive learning can allow method 40 to further optimizeitem inspection, channel determination, etc., thereby potentiallyleading to higher long-term profits for a practitioner of method 40.

[0208] Financial Intermediaries

[0209] An alternative embodiment of method 10 involves the baileeserving as an servicer and/or agent to a financial intermediary, ratherthan a merchant. In this embodiment, the financial intermediary canpromote its financial instrument as a purchasing means via whichpurchasers can be assured that purchases can be returned.

[0210] As an example, an issuer of a credit card, such as Visa, couldprovide users of its card with a “purchase protection plan” via whichitems purchased with the card could be returned to the bailee. Apurchaser who is unsatisfied with a purchased item could contact Visa toobtain a return authorization, and take and/or send the item to thebailee. Upon reported receipt of the item by the bailee, Visa couldcredit the purchaser's Visa account with the purchase price of the item.

[0211] Numerous variations on this example can also be visualized. Forexample, certain and/or all returns could be pre-authorized by thefinancial intermediary. As another example, the purchaser could contactthe financial intermediary and/or the bailee via, for example theInternet, to obtain a return authorization.

[0212] As yet another example, the “return” could be in actuality arepossession, triggered by a default on payment for the purchased itemor some other contract breach. The item could be returned because it isat the end of its contractual life, such as in the case of a leaseditem. The item could also be returned for repair and/or servicing, orcould be a returned loaner. Further, the item could be an unexecutedgift certificate or store credit.

[0213] In any event, the financial intermediary and/or the bailee candetermine the rules for returns (e.g., time limits, condition of item,valuation of return, when authorization is required, return fees, etc.)

[0214] The provision of such a service can provide many advantages. Afinancial intermediary offering such a service can gain a marketingadvantage whereby it can distinguish itself from its competitors.Consumers can be assured of a uniform return policy that is independentof the merchants from whom they originally purchased. Merchants can berid of the difficulties associated with handling returns, and/or withauthorizing returns being made to the bailee.

[0215] There are a number of types of financial intermediaries who couldparticipate in this embodiment. These intermediaries could include anycredit card issuer, such as Visa, MasterCard, American Express,Discover, etc.; First USA, Capital One, Chase, etc.; JC Penney, Macy's,Nordstrom, etc.; and/or banks, credit unions, trading firms, leasingcompanies, insurance companies, warranty companies, etc.

[0216] Thus, an embodiment of the invention can provide a method forre-selling a previously-purchased item. The method can include receivingfrom a financial intermediary, through whom a first purchaser financed apurchase of the item, an authorization to facilitate the reselling ofthe item by the first consumer, and receiving the previously-purchaseditem. The method can also include offering the item for sale via anInternet auction site and selling the item to a second consumer.

[0217] Still other advantages of the present invention will becomereadily apparent to those skilled in this art from the above-reciteddetailed description. Accordingly, the drawings and descriptions are tobe regarded as illustrative in nature, and not as restrictive. Forexample, the optimization engine can be adapted to automatically alertknown potential bulk buyers when a large shipment is expected and/orarrives. As another example, the system's auction site and/or system canautomatically sell an item to a second highest bidder if the firsthighest bidder can not complete a purchase, which might occur, forexample, if the first highest bidder's attempted credit card paymenttransaction for the purchase is rejected by the credit card issuer.

What is claimed is:
 1. A processor-assisted method for selecting a saleschannel for a specific item, comprising: for a set of items, the setassociated with one or more channel variables, each channel variablehaving a plurality of channel values, the set also associated with aplurality of item variables, each item variable having a plurality ofitem values, identifying each possible combination of channel values anditem values; with a processor, comparing a statistically determinedexpected cost to a statistically determined expected benefit of eachpossible combination to determine an optimal combination; and offering aspecific item for sale on a channel having the channel values of theoptimal combination.
 2. The method of claim 1, further comprisingidentifying the set of items.
 3. The method of claim 1, furthercomprising associating the set of items with the one or more channelvariables.
 4. The method of claim 1, further comprising associating theset of items with the one or more item variables.
 5. The method of claim1, further comprising identifying the one or more channel variablesassociated with the set of items.
 6. The method of claim 1, furthercomprising identifying the plurality of item variables associated withthe set of items.
 7. The method of claim 1, further comprisingidentifying the plurality of channel values of each of the one or morechannel variables associated with the set of items.
 8. The method ofclaim 1, further comprising identifying the plurality of item values ofeach of the plurality of item variables associated with the set ofitems.
 9. The method of claim 1, further comprising statisticallydetermining the one or more channel variables associated with the set ofitems.
 10. The method of claim 1, further comprising statisticallydetermining the plurality of item variables associated with the set ofitems.
 11. The method of claim 1, further comprising statisticallydetermining the plurality of channel values of each of the one or morechannel variables associated with the set of items.
 12. The method ofclaim 1, further comprising statistically determining the plurality ofitem values of each of the plurality of item variables associated withthe set of items.
 13. The method of claim 1, further comprisingemploying statistical textual analysis to determine the one or morechannel variables associated with the set of items.
 14. The method ofclaim 1, further comprising employing statistical textual analysis todetermine the plurality of item variables associated with the set ofitems.
 15. The method of claim 1, further comprising employingstatistical textual analysis to determine the plurality of channelvalues of each of the one or more channel variables associated with theset of items.
 16. The method of claim 1, further comprising employingstatistical textual analysis to determine the plurality of item valuesof each of the plurality of item variables associated with the set ofitems.
 17. The method of claim 1, further comprising: obtaining textualdescriptions of each item in the set of items; and employing statisticaltextual analysis on descriptions of each item in the set of items toidentify the one or more channel variables associated with the set ofitems.
 18. The method of claim 1, further comprising: obtaining textualdescriptions of each item in the set of items; and employing statisticaltextual analysis on descriptions of each item in the set of items toidentify the one or more item variables associated with the set ofitems.
 19. The method of claim 1, further comprising: obtaining textualdescriptions of each item in the set of items; and employing statisticaltextual analysis on descriptions of each item in the set of items toidentify the plurality of channel values of each of the one or morechannel variables associated with the set of items.
 20. The method ofclaim 1, further comprising: obtaining textual descriptions of each itemin the set of items; and employing statistical textual analysis ondescriptions of each item in the set of items to identify the pluralityof item values of each of the plurality of item variables associatedwith the set of items.
 21. The method of claim 1, further comprising:obtaining textual descriptions of each item in the set of items; andacross the set of items, linearly regressing each keyword in a textualdescription of each item against a selling price of the item.
 22. Themethod of claim 1, further comprising: obtaining textual descriptions ofeach item in the set of items; across the set of items, linearlyregressing each keyword in a textual description of each item against aselling price of the item; and identifying each word that has astatistically significant correlation to selling price as a significantword.
 23. The method of claim 1, further comprising: obtaining textualdescriptions of each item in the set of items; across the set of items,linearly regressing each keyword in a textual description of each itemagainst a selling price of the item; characterizing each keyword thathas a statistically significant correlation to selling price as asignificant word; and determining a channel variable from at least onesignificant word.
 24. The method of claim 1, further comprising:obtaining textual descriptions of each item in the set of items; acrossthe set of items, linearly regressing each keyword in a textualdescription of each item against a selling price of the item;characterizing each keyword that has a statistically significantcorrelation to selling price as a significant word; and determining achannel value from at least one significant word.
 25. The method ofclaim 1, further comprising: obtaining textual descriptions of each itemin the set of items; across the set of items, linearly regressing eachkeyword in a textual description of each item against a selling price ofthe item; characterizing each keyword that has a statisticallysignificant correlation to selling price as a significant word; anddetermining an item variable from at least one significant word.
 26. Themethod of claim 1, further comprising: obtaining textual descriptions ofeach item in the set of items; across the set of items, linearlyregressing each keyword in a textual description of each item against aselling price of the item; characterizing each keyword that has astatistically significant correlation to selling price as a significantword; and determining an item value from at least one significant word.27. The method of claim 1, further comprising determining the optimalcombination from the expected cost and expected benefit of each possible28. The method of claim 1, further comprising determining the optimalcombination from the expected cost and expected benefit of each possiblecombination and from one or more item values of the specific item. 29.The method of claim 1, further comprising determining the optimalcombination from the expected cost and expected benefit of each possiblecombination and from one or more inspected item values of the specificitem.
 30. The method of claim 1, further comprising modifying thechannel values of the optimal combination based on one or more inspecteditem values of the specific item.
 31. The method of claim 1, furthercomprising re-determining the channel values of the optimal combinationbased on one or more inspected item values of the specific item and astatistically determined expected cost and a statistically determinedexpected benefit of each possible channel value combination.
 32. Themethod of claim 1, wherein the optimal combination identifies an optimalinspection order for the item values of the optimal combination.
 33. Themethod of claim 1, further comprising determining an optimal order forat least a portion of the optimal combination.
 34. The method of claim1, wherein the optimal combination includes at least one optimal itemvalue.
 35. The method of claim 1, wherein the optimal combinationimplies at least one optimal item variable.
 36. The method of claim 1,wherein the optimal combination implies at least one optimal itemvariable to identify.
 37. The method of claim 1, wherein the optimalcombination implies at least one optimal item variable to inspect. 38.The method of claim 1, wherein the optimal combination includes at leastone optimal channel value.
 39. The method of claim 1, wherein theoptimal combination implies at least one optimal channel variable. 40.The method of claim 1, wherein the optimal combination includes at leastone optimal channel value to advertise.
 41. The method of claim 1,further comprising obtaining cost data associated with the plurality ofitems.
 42. The method of claim 1, further comprising obtaining salesdata associated with the plurality of item.
 43. The method of claim 1,further comprising obtaining sales volume data associated with theplurality of items.
 44. The method of claim 1, further comprisingobtaining sales revenue data associated with the plurality of items. 45.The method of claim 1, further comprising obtaining benefit informationdata with the plurality of items.
 46. The method of claim 1, furthercomprising determining an expected cost for the plurality of items fromcosts associated with selling the items.
 47. The method of claim 1,further comprising determining an expected benefit for the plurality ofitems from benefits associated with selling the items.
 48. The method ofclaim 1, wherein the expected benefit is adjusted for sales effects. 49.The method of claim 1, wherein the expected benefit is adjusted forseasonal effects.
 50. The method of claim 1, wherein the expectedbenefit is adjusted for channel flooding effects.
 51. The method ofclaim 1, further comprising: receiving a specific item by a bailee froma second rightholder, a right for the specific item having previouslytransferred from one of a plurality of first rightholders to the secondrightholder.
 52. The method of claim 1, further comprising: receiving aspecific item by a bailee from a second rightholder, a right for thespecific item having previously transferred from one of a plurality offirst rightholders to the second rightholder; and after receipt of thespecific item, facilitating a return of the right for the specific itemfrom the second rightholder to the first rightholder.
 53. The method ofclaim 1, further comprising inspecting a specific item.
 54. The methodof claim 1, further comprising, for a specific item, inspecting the itemvariables associated with the optimal combination.
 55. The method ofclaim 1, further comprising inspecting a specific item having itemvariables corresponding to those of the plurality of items.
 56. Themethod of claim 1, further comprising appraising a specific item. 57.The method of claim 1, further comprising, for a specific item,appraising the item variables associated with the optimal combination.58. The method of claim 1, further comprising appraising a specific itemhaving item variables corresponding to those of the plurality of items.59. The method of claim 1, further comprising describing a specificitem.
 60. The method of claim 1, further comprising, for a specificitem, describing the specific item's item values corresponding to theitem variables associated with the optimal combination.
 61. The methodof claim 1, further comprising describing a specific item having itemvariables corresponding to those of the plurality of items.
 62. Themethod of claim 1, further comprising: receiving a specific item by abailee from a second rightholder, a right for the specific item havingpreviously transferred from one of a plurality of first rightholders tothe second rightholder; after receipt of the specific item, facilitatinga return of the right for the specific item from the second rightholderto the first rightholder; appraising the specific item; and identifyinga third rightholder for the specific item.
 63. The method of claim 1,further comprising identifying a value for at least one variable of aspecific item.
 64. The method of claim 1, further comprising identifyinga value for at least one variable implied by the optimal combination.65. The method of claim 1, further comprising identifying a value foreach variable implied by the optimal combination.
 66. The method ofclaim 1, further comprising obtaining a value for each variable impliedby the optimal combination.
 67. The method of claim 1, furthercomprising obtaining a value for each item variable implied by theoptimal combination.
 68. The method of claim 1, further comprisingdetermining a value for each channel variable implied by the optimalcombination.
 69. The method of claim 1, further comprising inspecting avalue for each item variable implied by the optimal combination.
 70. Themethod of claim 1, further comprising describing a value for eachchannel variable implied by the optimal combination.
 71. The method ofclaim 1, further comprising advertising a value at least one variableimplied by the optimal combination.
 72. The method of claim 1, furthercomprising determining the expected cost of each combination.
 73. Themethod of claim 1, further comprising statistically determining theexpected cost of each combination.
 74. The method of claim 1, furthercomprising determining the expected benefit of each combination.
 75. Themethod of claim 1, further comprising statistically determining theexpected benefit of each combination.
 76. The method of claim 1, whereinthe expected benefit is associated with selling the item.
 77. The methodof claim 1, wherein at least a portion of the expected cost isassociated with inspecting the item.
 78. The method of claim 1, furthercomprising offering the item for sale.
 79. The method of claim 1,further comprising offering the item for sale via a channel having atleast some of the channel values of the optimal combination.
 80. Themethod of claim 1, further comprising offering the item for sale via achannel having the channel values of the optimal combination.
 81. Themethod of claim 1, further comprising auctioning the item.
 82. Themethod of claim 1, further comprising auctioning the item via a channelhaving at least some of the channel values of the optimal combination.83. The method of claim 1, further comprising auctioning the item via achannel having the channel values of the optimal combination.
 84. Themethod of claim 1, wherein the expected benefit is an expected totalrevenue.
 85. The method of claim 1, wherein the expected benefit is anexpected incremental revenue.
 86. The method of claim 1, wherein theexpected benefit is an expected total profit.
 87. The method of claim 1,wherein the expected benefit is an expected incremental profit.
 88. Themethod of claim 1, wherein the expected benefit is an expected totalcost.
 89. The method of claim 1, wherein the expected benefit is anexpected incremental cost.
 90. The method of claim 1, wherein theexpected cost includes all expected cost for processing the item. 91.The method of claim 1, wherein the expected cost includes an expectedcost for offering the item for sale.
 92. The method of claim 1, whereinthe expected cost includes an expected cost for selling the item. 93.The method of claim 1, wherein the expected cost includes an expectedcost for delivering the item to a buyer.
 94. The method of claim 1,further comprising forecasting expected availability of the item. 95.The method of claim 1, further comprising forecasting expected sales forthe item.
 96. The method of claim 1, further comprising forecastingexpected sales patterns for the item.
 97. The method of claim 1, furthercomprising adjusting the expected benefit to reflect expectedavailability of the item.
 98. The method of claim 1, further comprisingadjusting the expected benefit to reflect expected sales of the item.99. The method of claim 1, further comprising adjusting the expectedbenefit to reflect expected sales patterns of the item.
 100. The methodof claim 1, further comprising adjusting the expected benefit to reflectexpected demand for the item.
 101. A computer-readable medium storinginstructions for activities comprising: for a set of items, the setassociated with one or more channel variables, each channel variablehaving a plurality of channel values, the set also associated with aplurality of item variables, each item variable having a plurality ofitem values, identifying each possible combination of channel values anditem values; with a processor, comparing a statistically determinedexpected cost to a statistically determined expected benefit of eachpossible combination to determine an optimal combination; and offering aspecific item for sale on a channel having the channel values of theoptimal combination.
 102. An apparatus for selecting variables toidentify for an item, comprising: for a set of items, the set associatedwith one or more channel variables, each channel variable having aplurality of channel values, the set also associated with a plurality ofitem variables, each item variable having a plurality of item values,means for identifying each possible combination of channel values anditem values; means for comparing a statistically determined expectedcost to a statistically determined expected benefit of each possiblecombination to determine an optimal combination; and means for offeringa specific item for sale on a channel having the channel values of theoptimal combination.
 103. A method for selecting a sales channel,comprising: obtaining a plurality of values of an item; associating theplurality of values of the item with an expected profit for the itemfrom a potential sale of the item via each of a plurality of saleschannels; and determining, with a processor, the sales channel with thelargest expected profit.
 104. A processor-assisted method fordetermining an optimal sales channel, comprising: identifying aplurality of values of an item; associating the plurality of values ofthe item with a processor-determined expected benefit for the item froma potential sale of the item via each of a plurality of sales channels;and determining, with a processor, the sales channel with the largestexpected benefit.
 105. A method for providing a description of an item,comprising: receiving an item; recording a verbal description of theitem; linking the verbal description to a textual description of theitem; and rendering the descriptions to a potential rightholder of theitem.
 106. The method of claim 105, wherein the item is received by abailee.
 107. The method of claim 105, wherein the item is received by abailee from a second rightholder, a right for the item having previouslytransferred from one of a plurality of first rightholders to the secondrightholder.
 108. The method of claim 105, further comprising inspectingthe item.
 109. The method of claim 105, further comprising appraisingthe item.
 110. The method of claim 105, further comprising obtaining atextual description of the item.
 111. The method of claim 105, furthercomprising obtaining a graphical description of the item.
 112. Themethod of claim 105, further comprising obtaining a photographicaldescription of the item.
 113. The method of claim 105, furthercomprising obtaining an audio description of the item.
 114. The methodof claim 105, further comprising obtaining a videographic description ofthe item.
 115. The method of claim 105, further comprising modifying atextual description of the item.
 116. The method of claim 105, furthercomprising modifying a graphical description of the item.
 117. Themethod of claim 105, further comprising modifying a photographicaldescription of the item.
 118. The method of claim 105, furthercomprising modifying an audio description of the item.
 119. The methodof claim 105, further comprising modifying a videographic description ofthe item.
 120. The method of claim 105, further comprising recording atextual description of the item.
 121. The method of claim 105, furthercomprising recording a graphical description of the item.
 122. Themethod of claim 105, further comprising recording a photographicaldescription of the item.
 123. The method of claim 105, furthercomprising recording an audio description of the item.
 124. The methodof claim 105, further comprising recording a videographic description ofthe item.
 125. The method of claim 105, further comprising sorting theitem into one of the plurality of classifications.
 126. The method ofclaim 105, further comprising identifying the item with one of aplurality of classifications.
 127. The method of claim 105, wherein atleast one of the descriptions identifies a describer of the item. 128.The method of claim 105, wherein at least one of the descriptionsdescribes an identification of the item.
 129. The method of claim 105,wherein at least one of the descriptions describes an overall conditionof the item.
 130. The method of claim 105, wherein at least one of thedescriptions describes a defect of the item.
 131. The method of claim105, wherein at least one of the descriptions describes a packaging ofthe item.
 132. The method of claim 105, wherein at least one of thedescriptions describes a brand of the item.
 133. The method of claim105, wherein at least one of the descriptions describes a style of theitem.
 134. The method of claim 105, wherein at least one of thedescriptions describes a size of the item.
 135. The method of claim 105,wherein at least one of the descriptions describes a color of the item.136. The method of claim 105, wherein at least one of the descriptionsdescribes a feature of the item.
 137. The method of claim 105, whereinat least one of the descriptions describes a limitation of the item.138. The method of claim 105, wherein at least one of the descriptionsdescribes a remaining warranty of the item.
 139. The method of claim105, wherein at least one of the descriptions describes a previousrightholder of the item.
 140. The method of claim 105, wherein at leastone of the descriptions describes a reason for return of the item. 141.The method of claim 105, further comprising creating a hyperlink fromthe textual description to the verbal description.
 142. The method ofclaim 105, wherein the verbal description is recorded as a digital audiofile.
 143. The method of claim 105, wherein said rendering thedescriptions to a potential rightholder of the item includes playing theverbal description to the potential rightholder.
 144. The method ofclaim 105, wherein said rendering the descriptions to a potentialrightholder of the item includes playing the verbal description to thepotential rightholder when requested by the potential rightholder. 145.The method of claim 105, wherein said rendering the descriptions to apotential rightholder of the item includes receiving an indication toplay the verbal description.
 146. The method of claim 105, wherein saidrendering the descriptions to a potential rightholder of the itemincludes receiving an indication to play the verbal description from thepotential rightholder.
 147. The method of claim 105, wherein saidrendering the descriptions to a potential rightholder of the itemincludes receiving an indication that the potential rightholder hasactivated a hyperlink.
 148. The method of claim 105, further comprisingoffering the item for sale.
 149. The method of claim 105, furthercomprising offering the item for sale on behalf of a first rightholder.150. The method of claim 105, further comprising offering the item forlease.
 151. The method of claim 105, further comprising offering theitem for lease on behalf of a first rightholder.
 152. The method ofclaim 105, further comprising offering the item for rent.
 153. Themethod of claim 105, further comprising offering the item for rent onbehalf of a first rightholder.
 154. The method of claim 105, furthercomprising offering the item for loan.
 155. The method of claim 105,further comprising offering the item for loan on behalf of a firstrightholder.
 156. The method of claim 105, further comprising auctioningthe item.
 157. The method of claim 105, further comprising auctioningthe item via the Internet.
 158. The method of claim 105, furthercomprising selling the item.
 159. The method of claim 105, furthercomprising selling the item to a third rightholder.
 160. The method ofclaim 105, further comprising leasing the item.
 161. The method of claim105, further comprising leasing the item to a third rightholder. 162.The method of claim 105, further comprising renting the item.
 163. Themethod of claim 105, further comprising renting the item to a thirdrightholder.
 164. The method of claim 105, further comprising loaningthe item.
 165. The method of claim 105, further comprising loaning theitem to a third rightholder.
 166. The method of claim 105, furthercomprising transferring title for the item from a first rightholder to athird rightholder.
 167. The method of claim 105, further comprisingfacilitating a transfer of title for the item from a first rightholderto a third rightholder.
 168. The method of claim 105, further comprisingfacilitating a transfer of the right for the item from a firstrightholder to a third rightholder.
 169. The method of claim 105,further comprising facilitating a transfer of a right of possession forthe item from a first rightholder to a third rightholder.
 170. Themethod of claim 105, further comprising facilitating an extinguishmentof the right in a first rightholder.
 171. The method of claim 105,further comprising providing the item to a third rightholder.
 172. Themethod of claim 105, further comprising delivering the item to a thirdrightholder.
 173. The method of claim 105, further comprising billing athird rightholder for the item.
 174. The method of claim 105, furthercomprising charging a third rightholder for the item.
 175. The method ofclaim 105, further comprising receiving payment for the item.
 176. Themethod of claim 105, further comprising receiving payment for the itemfrom the third rightholder.
 177. The method of claim 105, furthercomprising paying a first rightholder for the item.
 178. The method ofclaim 105, further comprising forwarding a payment for the item to afirst rightholder.
 179. The method of claim 105, further comprisingforwarding a portion of a payment for the item to a first rightholder.180. The method of claim 105, further comprising receiving an evaluationof the item.
 181. The method of claim 105, further comprising receivingan evaluation of the item from a third rightholder.
 182. The method ofclaim 105, further comprising providing an evaluation of the item. 183.The method of claim 105, further comprising providing an evaluation ofthe item to a first rightholder.
 184. The method of claim 105, furthercomprising receiving an evaluation of a describer of the item.
 185. Themethod of claim 105, further comprising receiving an evaluation of atleast one description of the item.
 186. The method of claim 105, furthercomprising providing an evaluation of a describer of the item.
 187. Themethod of claim 105, further comprising providing an evaluation of atleast one description of the item.
 188. The method of claim 105, furthercomprising notifying a stakeholder of the receipt by a bailee of theitem.
 189. The method of claim 105, further comprising notifying a firstrightholder of the receipt by a bailee of the item.
 190. The method ofclaim 105, further comprising notifying a second rightholder of thereceipt by a bailee of the item.
 191. The method of claim 105, furthercomprising obtaining return information.
 192. The method of claim 105,further comprising obtaining information regarding a stakeholder.
 193. Acomputer-readable medium storing instructions for activities comprising:receiving an item; recording a verbal description of the item; linkingthe verbal description to a textual description of the item; andrendering the descriptions to a potential rightholder of the item. 194.An apparatus for providing a description of an item, comprising: meansfor receiving an item; means for recording a verbal description of theitem; means for linking the verbal description to a textual descriptionof the item; and means for rendering the descriptions to a potentialrightholder of the item.
 195. A description of an item provided by aprocess comprising: receiving an item; recording a verbal description ofthe item; linking the verbal description to a textual description of theitem; and rendering the descriptions to a potential rightholder of theitem.
 196. A method for providing a description of an item, comprising:recording a verbal description of the item; linking the verbaldescription to a textual description of the item; and rendering theverbal description to a potential rightholder of the item.
 197. A methodfor providing a description of an item, comprising: receiving an item;recording a first description of the item; linking the first descriptionto a second description of the item; and rendering the descriptions to apotential rightholder of the item.
 198. A method for providing adescription of a returned item, comprising: receiving a returned item;recording a first description of the item; linking the first descriptionto a second description of the item; and rendering the descriptions to apotential rightholder of the item.
 199. A method for providing adescription of a returned item, comprising: receiving a returned item bya bailee from a second rightholder, a right for the item havingpreviously transferred from one of a plurality of first rightholders tothe second rightholder; recording a first description of the item;linking the first description to a second description of the item; andrendering the descriptions to a potential rightholder of the item. 200.A method for providing a description of a returned item, comprising:receiving a returned item; recording a description of the item;rendering the description to a potential rightholder of the item.
 201. Amethod for providing a description of a returned item, comprising:receiving a returned item; recording a first description of the item;and joining the first description with a second description of the item.202. A computer-readable medium storing instructions for activitiescomprising: receiving a returned item; recording a description of theitem; rendering the description to a potential rightholder of the item.203. An apparatus for providing a description of a returned item,comprising: means for receiving a returned item; means for recording adescription of the item; means for rendering the description to apotential rightholder of the item.
 204. A method for managing a changein rightholders for an item, comprising: receiving an item by a baileefrom a second rightholder, a right for the item having previouslytransferred from one of a plurality of first rightholders to the secondrightholder; after receipt of the item, facilitating a return of theright for the item from the second rightholder to the first rightholder;appraising the item; and identifying a third rightholder for the item.205. The method of claim 204, wherein the right is possession.
 206. Themethod of claim 204, wherein the right is title.
 207. The method ofclaim 204, further comprising receiving an authorization regarding theitem.
 208. The method of claim 204, further comprising receiving anauthorization to receive the item.
 209. The method of claim 204, furthercomprising receiving from the first rightholder an authorization toreceive the item.
 210. The method of claim 204, further comprisingreceiving an authorization to facilitate a change in rightholder for theitem.
 211. The method of claim 204, further comprising receiving anauthorization to facilitate a change in possession of the item.
 212. Themethod of claim 204, further comprising receiving an authorization tofacilitate a change in ownership of the item.
 213. The method of claim204, further comprising receiving an authorization to facilitatedisposal of the item.
 214. The method of claim 204, further comprisingreceiving an authorization to facilitate selling the item.
 215. Themethod of claim 204, further comprising receiving an authorization tofacilitate leasing the item.
 216. The method of claim 204, furthercomprising extinguishing the right for the item in the secondrightholder after receipt of the item.
 217. The method of claim 204,further comprising inspecting the item.
 218. The method of claim 204,further comprising describing the item.
 219. The method of claim 204,further comprising classifying the item into one of the plurality ofclassifications.
 220. The-method of claim 204, further comprisingidentifying the item with one of a plurality of classifications. 221.The method of claim 204, further comprising sorting the item into one ofa plurality of classifications.
 222. The method of claim 204, furthercomprising classifying the item into one of a plurality ofclassifications, the one classification from the plurality ofclassifications including items in an original condition.
 223. Themethod of claim 204, further comprising classifying the item into one ofa plurality of classifications, the one classification from theplurality of classifications including undamaged items.
 224. The methodof claim 204, further comprising classifying the item into one of aplurality of classifications, the one classification from the pluralityof classifications including damaged items.
 225. The method of claim204, further comprising classifying the item into one of a plurality ofclassifications, the one classification from the plurality ofclassifications including defective items.
 226. The method of claim 204,further comprising classifying the item into one of a plurality ofclassifications, the one classification from the plurality ofclassifications including non-defective items.
 227. The method of claim204, further comprising classifying the item into one of a plurality ofclassifications, the one classification from the plurality ofclassifications including functional items.
 228. The method of claim204, further comprising classifying the item into one of a plurality ofclassifications, the one classification from the plurality ofclassifications including items having damaged packaging.
 229. Themethod of claim 204, further comprising classifying the item into one ofa plurality of classifications, the one classification from theplurality of classifications including items undamaged packaging. 230.The method of claim 204, further comprising offering the item for sale.231. The method of claim 204, further comprising offering the item forsale on behalf of the first rightholder.
 232. The method of claim 204,further comprising auctioning the item.
 233. The method of claim 204,further comprising auctioning the item via the Internet.
 234. The methodof claim 204, further comprising selling the item.
 235. The method ofclaim 204, further comprising selling the item to the third rightholder.236. The method of claim 204, further comprising transferring title forthe item from the first rightholder to the third rightholder.
 237. Themethod of claim 204, further comprising facilitating a transfer of titlefor the item from the first rightholder to the third rightholder. 238.The method of claim 204, further comprising facilitating a transfer ofthe right for the item from the first rightholder to the thirdrightholder.
 239. The method of claim 204, further comprisingfacilitating a transfer of a right of possession for the item from thefirst rightholder to the third rightholder.
 240. The method of claim204, further comprising facilitating an extinguishment of the right inthe first rightholder.
 241. The method of claim 204, further comprisingproviding the item to the third rightholder.
 242. The method of claim204, further comprising delivering the item to the third rightholder.243. The method of claim 204, further comprising billing the thirdrightholder for the item.
 244. The method of claim 204, furthercomprising charging the third rightholder for the item.
 245. The methodof claim 204, further comprising receiving payment for the item. 246.The method of claim 204, further comprising receiving payment for theitem from the third rightholder.
 247. The method of claim 204, furthercomprising paying the first rightholder for the item.
 248. The method ofclaim 204, further comprising forwarding a payment for the item to thefirst rightholder.
 249. The method of claim 204, further comprisingforwarding a portion of a payment for the item to the first rightholder.250. The method of claim 204, further comprising receiving an evaluationof the item.
 251. The method of claim 204, further comprising receivingan evaluation of the item from the third rightholder.
 252. The method ofclaim 204, further comprising providing an evaluation of the item. 253.The method of claim 204, further comprising providing an evaluation ofthe item to the first rightholder.
 254. The method of claim 204, furthercomprising notifying a stakeholder of the receipt by the bailee of theitem.
 255. The method of claim 204, further comprising notifying thefirst rightholder of the receipt by the bailee of the item.
 256. Themethod of claim 204, further comprising notifying the second rightholderof the receipt by the bailee of the item.
 257. The method of claim 204,further comprising obtaining return information.
 258. The method ofclaim 204, further comprising obtaining an identification of the firstrightholder.
 259. The method of claim 204, further comprising obtainingan identification of the second rightholder.
 260. The method of claim204, further comprising obtaining an identification of the thirdrightholder.
 261. The method of claim 204, further comprising obtaininginformation regarding a stakeholder.
 262. The method of claim 204,further comprising obtaining information regarding the firstrightholder.
 263. The method of claim 204, further comprising obtaininginformation regarding the second rightholder.
 264. The method of claim204, further comprising obtaining information regarding the thirdrightholder.
 265. The method of claim 204, further comprising obtainingmarketing information regarding the first rightholder.
 266. The methodof claim 204, further comprising obtaining marketing informationregarding the second rightholder.
 267. The method of claim 204, furthercomprising obtaining marketing information regarding the thirdrightholder.
 268. The method of claim 204, further comprising obtainingdemographic information regarding the second rightholder.
 269. Themethod of claim 204, further comprising obtaining demographicinformation regarding the third rightholder.
 270. The method of claim204, further comprising obtaining transaction pattern informationregarding a stakeholder.
 271. The method of claim 204, furthercomprising obtaining sales pattern information regarding the firstrightholder.
 272. The method of claim 204, further comprising obtainingleasing pattern information regarding the first rightholder.
 273. Themethod of claim 204, further comprising obtaining return patterninformation regarding the second rightholder.
 274. The method of claim204, further comprising obtaining purchase pattern information regardingthe third rightholder.
 275. The method of claim 204, further comprisingobtaining leasing pattern information regarding the third rightholder.276. The method of claim 204, further comprising estimating purchasepattern information regarding the second rightholder.
 277. The method ofclaim 204, further comprising estimating leasing pattern informationregarding the second rightholder.
 278. The method of claim 204, furthercomprising obtaining at least one attribute of the item.
 279. The methodof claim 204, further comprising obtaining at least one attribute of theitem from the first rightholder.
 280. The method of claim 204, furthercomprising obtaining an identification of the item.
 281. The method ofclaim 204, further comprising obtaining a condition of the item. 282.The method of claim 204, further comprising obtaining a description ofthe item.
 283. The method of claim 204, further comprising obtaining abrand of the item.
 284. The method of claim 204, further comprisingobtaining a style of the item.
 285. The method of claim 204, furthercomprising obtaining a size of the item.
 286. The method of claim 204,further comprising obtaining a color of the item.
 287. The method ofclaim 204, further comprising obtaining a feature of the item.
 288. Themethod of claim 204, further comprising obtaining a limitation of theitem.
 289. The method of claim 204, further comprising obtaining areason for return of the item.
 290. The method of claim 204, furthercomprising obtaining return information for a plurality of returneditems.
 291. The method of claim 204, further comprising obtaining areturn pattern for an item.
 292. The method of claim 204, furthercomprising providing return information to a stakeholder.
 293. Themethod of claim 204, further comprising providing return information tothe first rightholder.
 294. The method of claim 204, further comprisingproviding return information to the second rightholder.
 295. The methodof claim 204, further comprising providing return information to thethird rightholder.
 296. The method of claim 204, wherein the firstrightholder is a seller.
 297. The method of claim 204, wherein the firstrightholder is a lessor.
 298. The method of claim 204, wherein thesecond rightholder is a purchaser.
 299. The method of claim 204, whereinthe second rightholder is a lessee.
 300. The method of claim 204,wherein the third rightholder is a purchaser.
 301. The method of claim204, wherein the third rightholder is a lessee.
 302. The method of claim204, wherein the first rightholder is a merchant.
 303. The method ofclaim 204, wherein the second rightholder is a consumer.
 304. The methodof claim 204, wherein the second rightholder is a merchant.
 305. Themethod of claim 204, wherein the second rightholder is a merchant. 306.The method of claim 204, wherein the second rightholder is a vendor.307. The method of claim 204, wherein the second rightholder is asupplier.
 308. The method of claim 204, wherein the second rightholderis a distributor.
 309. The method of claim 204, wherein the secondrightholder is a manufacturer.
 310. A computer-readable medium storinginstructions for activities comprising: receiving the item by a baileefrom a second rightholder, a right for the item having previouslytransferred from one of a plurality of first rightholders to the secondrightholder; after receipt of the item, facilitating a return of theright for the item from the second rightholder to the first rightholder;appraising the item; and identifying a third rightholder for the item.311. An apparatus for managing a change in rightholders for an item,comprising: means for receiving the item by a bailee from a secondrightholder, a right for the item having previously transferred from oneof a plurality of first rightholders to the second rightholder; meansfor facilitating a return of the right for the item from the secondrightholder to the first rightholder after receipt of the item; meansfor appraising the item; and means for identifying a third rightholderfor the item.
 312. An item returned by a process comprising: receivingthe item by a bailee from a second rightholder, a right for the itemhaving previously transferred from one of a plurality of firstrightholders to the second rightholder; after receipt of the item,facilitating a return of the right for the item from the secondrightholder to the first rightholder; appraising the item; andidentifying a third rightholder for the item.
 313. A method for managingreverse logistics for a plurality of items, comprising: for each itemfrom the plurality of items: receiving possession, but not title, of theitem from one of a plurality of first purchasers, title for the itemhaving previously transferred from one of a plurality of sellers to theone of a plurality of first purchasers; facilitating a return of titlefor the item from its first purchaser to its seller; appraising theitem; and identifying a second purchaser for the item.
 314. A method fora first rightholder to manage a return of an item by a secondrightholder, comprising: transferring a right for the item from thefirst rightholder to the second rightholder; authorizing a bailee toreceive the item from the second rightholder; obtaining the bailee'sappraisal of the item.
 315. The method of claim 314, further comprisingaccepting a return of the right for the item from the secondrightholder.
 316. The method of claim 314, further comprising acceptingan extinguishment of the right for the item in the second rightholder.317. The method of claim 314, further comprising reimbursing the secondrightholder for the item.
 318. The method of claim 314, furthercomprising authorizing the bailee to identify a third rightholder forthe item.
 319. The method of claim 314, further comprising authorizingthe bailee to dispose of the item.
 320. The method of claim 314, furthercomprising authorizing the bailee to sell the item to a thirdrightholder.
 321. The method of claim 314, further comprisingauthorizing the bailee to lease the item to a third rightholder.
 322. Amethod for managing Z-goods, comprising: receiving from a financialintermediary an authorization regarding a Z-good; receiving the Z-goodfrom a provider at a central location; classifying the Z-good into oneof a plurality of classifications; identifying a purchaser for theZ-good.
 323. The method of claim 322, wherein the Z-good is a returnedgood.
 324. The method of claim 322, wherein the Z-good is a consumerreturn.
 325. The method of claim 322, wherein the Z-good is a surplusgood.
 326. The method of claim 322, wherein the provider obtained theZ-good using a financial instrument sponsored by the financialintermediary.
 327. The method of claim 322, wherein the providerpurchased the Z-good using a financial instrument sponsored by thefinancial intermediary.
 328. The method of claim 322, wherein theprovider leased the Z-good using a financial instrument sponsored by thefinancial intermediary.
 329. The method of claim 322, wherein theprovider rented the Z-good using a financial instrument sponsored by thefinancial intermediary.
 330. The method of claim 322, wherein theprovider financed the Z-good using a financial instrument sponsored bythe financial intermediary.
 331. The method of claim 322, wherein theauthorization authorizes receipt of the Z-good from the provider. 332.The method of claim 322, further comprising receiving an authorizationto facilitate disposal of the Z-good.
 333. The method of claim 322,further comprising receiving from the financial intermediary anauthorization to facilitate disposal of the Z-good.
 334. The method ofclaim 322, further comprising receiving an authorization to facilitatedisposal of the Z-good by the provider.
 335. The method of claim 322,further comprising receiving an authorization to facilitate disposal ofthe Z-good on behalf of the provider.
 336. The method of claim 322,further comprising receiving an authorization to facilitate disposal ofthe Z-good on behalf of a financial intermediary.
 337. The method ofclaim 322, further comprising receiving from a financial intermediarythrough whom the provider financed the Z-good an authorization tofacilitate disposal of the Z-good.
 338. The method of claim 322, furthercomprising receiving an authorization to facilitate selling the Z-good.339. The method of claim 322, further comprising receiving from afinancial intermediary from whom the provider financed the Z-good anauthorization to facilitate the reselling of the good by the provider.340. The method of claim 322, wherein the central location is a drop-offcenter.
 341. The method of claim 322, wherein the central location is aregional center.
 342. The method of claim 322, further comprisingidentifying the Z-good with one of the plurality of classifications.343. The method of claim 322, further comprising assigning the Z-goodwith one of the plurality of classifications.
 344. The method of claim322, further comprising sorting the Z-good into one of the plurality ofclassifications.
 345. The method of claim 322, wherein oneclassification from the plurality of classifications includes goods inan original condition.
 346. The method of claim 322, wherein oneclassification from the plurality of classifications includes undamagedgoods.
 347. The method of claim 322, wherein one classification from theplurality of classifications includes damaged goods.
 348. The method ofclaim 322, wherein one classification from the plurality ofclassifications includes defective goods.
 349. The method of claim 322,wherein one classification from the plurality of classificationsincludes non-defective goods.
 350. The method of claim 322, wherein oneclassification from the plurality of classifications includes functionalgoods.
 351. The method of claim 322, wherein one classification from theplurality of classifications includes goods having damaged packaging.352. The method of claim 322, wherein one classification from theplurality of classifications includes goods having undamaged packaging.353. The method of claim 322, further comprising receiving a descriptionof the Z-good.
 354. The method of claim 322, further comprisingreceiving a description of the Z-good from the provider.
 355. The methodof claim 322, further comprising describing the Z-good.
 356. The methodof claim 322, further comprising offering the Z-good for sale.
 357. Themethod of claim 322, further comprising offering the Z-good for sale onbehalf of a seller of the Z-good.
 358. The method of claim 322, furthercomprising auctioning the Z-good.
 359. The method of claim 322, furthercomprising auctioning the Z-good via the Internet.
 360. The method ofclaim 322, further comprising selling the Z-good.
 361. The method ofclaim 322, further comprising selling the Z-good on behalf of afinancier of the Z-good.
 362. The method of claim 322, furthercomprising selling the Z-good on behalf of a financial intermediary whofinanced the provider to obtain the Z-good.
 363. The method of claim322, further comprising selling the Z-good to the purchaser.
 364. Themethod of claim 322, further comprising providing the Z-good to thepurchaser.
 365. The method of claim 322, further comprising deliveringthe Z-good to the purchaser.
 366. The method of claim 322, furthercomprising receiving payment for the Z-good.
 367. The method of claim322, further comprising receiving payment for the Z-good from thepurchaser.
 368. The method of claim 322, further comprising paying thefinancial intermediary for the Z-good.
 369. The method of claim 322,further comprising forwarding payment for the Z-good to the financialintermediary.
 370. The method of claim 322, further comprising receivingan evaluation of the Z-good from the purchaser.
 371. The method of claim322, further comprising receiving an evaluation of the Z-good.
 372. Themethod of claim 322, further comprising providing an evaluation of theZ-good.
 373. The method of claim 322, further comprising providing anevaluation of the Z-good to the financial intermediary.
 374. The methodof claim 322, wherein the provider is a retail consumer.
 375. The methodof claim 322, wherein the provider is a retailer.
 376. The method ofclaim 322, wherein the provider is a merchant.
 377. The method of claim322, wherein the provider is a vendor.
 378. The method of claim 322,wherein the provider is a supplier.
 379. The method of claim 322,wherein the provider is a distributor.
 380. The method of claim 322,wherein the provider is a manufacturer.
 381. A method for re-sellingZ-goods, comprising: receiving from a provider a Z-good that is unwantedby the provider, the provider having obtained the Z-good via a financialinstrument; sorting the Z-good into one of a plurality ofclassifications; describing the Z-good; offering the Z-good for sale;selling the Z-good to a purchaser; delivering the Z-good to thepurchaser; receiving payment for the Z-good from the purchaser; payingthe provider for the Z-good.
 382. A computer-readable medium storinginstructions for activities comprising: receiving from a financialintermediary an authorization regarding a Z-good; receiving the Z-goodfrom a provider at a central location; classifying the Z-good into oneof a plurality of classifications; identifying a purchaser for theZ-good.
 383. An apparatus for managing Z-goods, comprising: means forreceiving from a financial intermediary an authorization regarding aZ-good, means for receiving the Z-good from a provider at a centrallocation; means for classifying the Z-good into one of a plurality ofclassifications; means for identifying a purchaser for the Z-good. 384.A method for re-selling a previously-purchased Z-good, comprising:receiving from a financial intermediary, through whom a first consumerfinanced a purchase of a Z-good, an authorization to facilitate thereselling of the Z-good by the first consumer; receiving a descriptionof the previously-purchased Z-good from the first consumer, offering theZ-good for sale via an Internet auction site; selling the Z-good to asecond consumer; receiving an evaluation of the Z-good from the secondconsumer; providing the evaluation to the financial intermediary.
 385. Amethod for re-selling a previously-purchased Z-good, comprising:receiving from a financial intermediary, through whom a first consumerfinanced a purchase of a Z-good, an authorization to facilitate thereselling of the Z-good; receiving the Z-good from the first consumer;offering the Z-good for sale; and selling the Z-good to a secondconsumer.
 386. A computer-readable medium storing instructions foractivities comprising: receiving from a financial intermediary, throughwhom a first consumer financed a purchase of a Z-good, an authorizationto facilitate the reselling of the Z-good; receiving the Z-good from thefirst consumer; offering the Z-good for sale; and selling the Z-good toa second consumer.
 387. An apparatus for re-selling apreviously-purchased Z-good, comprising: means for receiving from afinancial intermediary, through whom a first consumer financed apurchase of a Z-good, an authorization to facilitate the reselling ofthe Z-good; means for receiving the Z-good from the first consumer;means for offering the Z-good for sale; and means for selling the Z-goodto a second consumer.